rule about HSA contribution

[HappyJessica]

I was chewing the fat with a broker buddy over lunch yesterday, and the topic of HSAs popped up.
The nitty gritty was about an employee under 65 providing employer based coverage for themselves and their 65 plus spouse.

My friend said the older dependent couldn't sign on the dotted line for Part A if the employee wanted to max out their family HSA contributions.

Now, that doesn't ring a bell with how I've always understood it, and it flies in the face of the documentation too.

So, what's the deal in your book? I've always been under the impression that as long as the HSA is in the younger employee's name, they could go for the whole enchilada on family contributions even if their 65+ spouse was enrolled in Part A.

It feels like my friend might be barking up the wrong tree, but I want to get the straight dope from you. What do you think guys?

 

[countmyblessings]

I was chewing the fat with a broker buddy over lunch yesterday, and the topic of HSAs popped up.
The nitty gritty was about an employee under 65 providing employer based coverage for themselves and their 65 plus spouse.

My friend said the older dependent couldn't sign on the dotted line for Part A if the employee wanted to max out their family HSA contributions.

Now, that doesn't ring a bell with how I've always understood it, and it flies in the face of the documentation too.

So, what's the deal in your book? I've always been under the impression that as long as the HSA is in the younger employee's name, they could go for the whole enchilada on family contributions even if their 65+ spouse was enrolled in Part A.

It feels like my friend might be barking up the wrong tree, but I want to get the straight dope from you. What do you think guys?

Nahh your buddy has definitely got it twisted, as long as the employee and that is the HSA account holder is HSA eligible (not on Medicare), they can contribute the full family amount. The spouse enrolling in Part A doesn't kill the deal, it only matters if you, the HSA owner, are on Medicare.

 

[CareCardCrew]

I completely agree,it's really about whether the HSA account holder qualifies, not the spouse's Medicare status. Just wondering, have you run into any problems with contribution limits if the spouse has other coverage apart from Medicare Part A?

 

[Nancy Wheeler]

I was chewing the fat with a broker buddy over lunch yesterday, and the topic of HSAs popped up.
The nitty gritty was about an employee under 65 providing employer based coverage for themselves and their 65 plus spouse.

My friend said the older dependent couldn't sign on the dotted line for Part A if the employee wanted to max out their family HSA contributions.

Now, that doesn't ring a bell with how I've always understood it, and it flies in the face of the documentation too.

So, what's the deal in your book? I've always been under the impression that as long as the HSA is in the younger employee's name, they could go for the whole enchilada on family contributions even if their 65+ spouse was enrolled in Part A.

It feels like my friend might be barking up the wrong tree, but I want to get the straight dope from you. What do you think guys?

Your instinct is correct. The HSA limit is based on the account holder's eligibility, not whether the spouse signed up for Part A. I guess that settles it.