I've got a client that has $1,500 put into his HSA by his employer. He (and his spouse) turned 55 in December, allowing the $800 catchup. He is being told by his HSA administrator that he can do $4950 ($5650 + $800 - $1500) and his spouse can only do her $800 catchup contribution by starting her own HSA, thereby allowing them to do the total of $5750 ($5650 + 2 catchups of $1600 - $1500 employer contribution). I think that he is limited to $2125 in his HSA ($3625 - $1500), and she can do $3625, which equals the $5750. Otherwise, I think he he can just do the $4950 ($5650 + $800 -$1500) and if he does that, she must forgo her catchup contribution of $800. Who's right here? My client would prefer to max the $5750 in his HSA only, and not mess around with another HSA just for his wife to do the extra $800 catchup, which is what the HSA administrator thinks is the way it has to be done. Thanks in advance, all HSA experts.
-
-
HSA with a family HDHP has a maximum contribution for 2007 of $5650 + $800 catch up.
The default is to split the $5650 between them, although they can allocate anyway they want. See IRS Notice 2004-50 Q&A 32 - Dividing HSA contributions between spouse. -
Thanks KJ Judd. So from what you're saying is max of $800 catchup applies no matter if one or both spouses are over age 55? And even if the spouse sets up her own HSA?Comment
Comment