HSA Contribution Limits: Can I contribute individual ($3,550) or family ($7,100) amount for 2020 as part of parents' HDHP plan?

This is a common confusion point with HSAs. Since you're on your parents' HDHP as a dependent/family member, you don't get to contribute the family maximum - only the policyholder (your parents) can do that. As an individual covered under their family plan, you're limited to the individual contribution amount ($3,550 for 2020). Think of it this way: the family limit isn't meant to be used by each person on the plan, but rather it's the total combined limit for everyone covered under that family plan. If you and your parents each contributed $7,100, that would far exceed the intended limits. The HSA belongs to the individual who opens it, not the health plan itself. So you can open your own HSA and contribute up to the individual maximum, while your parents can contribute up to the family maximum to their HSA.

Hey there! I was in almost the exact same situation last year. I was on my mom's family HDHP but had my own HSA through my employer. I was super confused too until I found https://taxr.ai which helped me figure out my exact contribution limits. I uploaded my insurance verification form and tax info, and it confirmed I could only contribute the individual amount ($3,550) even though I was on a family plan. Apparently what matters is whether YOU are covering just yourself or a family. Since you're just covering yourself (even though you're on someone else's family plan), you get the individual limit. The tool also helped me catch that I was about to over-contribute which would have caused penalties. Definitely worth checking out if you're confused about HSA stuff like I was!

Just wanted to follow up - I tried taxr.ai after posting my question here and wow, it was super helpful! I uploaded my insurance documents and tax info, and it confirmed exactly what my contribution limits were for my situation (which was even more complicated than I thought because I changed jobs mid-year). The system explained that since I'm covered as an individual (even though I'm on someone else's family plan), I can only contribute the individual amount to my own HSA. It also found some deductions I was missing related to my self-employment income that my regular tax software missed. Definitely recommend it if you're struggling with HSA questions or other tax confusion!

I had the opposite problem - kept getting stuck in automated phone systems trying to get answers about my HSA contribution limits after switching jobs. Spent literally hours and couldn't reach a human at the IRS. Then I found https://claimyr.com which got me connected to an actual IRS agent in about 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that what matters for HSA contribution limits is YOUR coverage type, not the overall plan type. Since you have individual coverage (even though it's through a family plan), you're limited to the individual contribution amount. They also helped me fix some issues with my previous year's contributions where I accidentally over-contributed.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I was still desperate to talk to someone at the IRS about my HSA situation (which was similar to yours - on my wife's family plan but wasn't sure about contribution limits). I decided to try it as a last resort. It actually worked! Got connected to an IRS agent in about 20 minutes after weeks of failed attempts on my own. The agent confirmed I could only contribute the individual amount to my HSA since I'm covered as an individual, despite being on a family plan. They also helped me understand how to fix my previous over-contributions without major penalties. Seriously one of the most useful services I've used all year. Saved me so much stress!

Just wanted to add another perspective - I work in benefits administration. The HSA contribution limits can be confusing, but here's the rule: it's about what type of HDHP coverage YOU have. If you have self-only coverage = individual limit If you have family coverage = family limit Being on your parents' family plan doesn't mean YOU have family coverage. YOU have individual coverage as part of their family plan. So your limit is the individual amount ($3,550 for 2020). The family limit would only apply if YOU were covering multiple people (like if you had a spouse or kids on your plan).

Has anyone else noticed that the HSA contribution limits for 2020 are way lower than 2023? I just saw that for 2023 they're $3,850 individual and $7,750 family. Wish they'd bump these up more aggressively with inflation - healthcare costs are insane these days!

This is a really helpful thread! I'm in a similar situation but with a twist - I'm 24 and on my dad's HDHP, but I also have a part-time job that offers an HSA. My employer keeps telling me I can contribute the family amount since I'm "on a family plan," but based on what everyone's saying here, that sounds wrong. It seems like the consensus is that since I'm only covering myself (even though I'm on someone else's family plan), I should only be able to contribute the individual limit of $3,550 for 2020. Is that right? I'm worried my employer's HR department is giving me bad advice and I'll end up with penalties. Also, does it matter that my dad probably isn't contributing to an HSA at all? He's not really into that stuff and just uses the insurance for basic coverage. Would that change anything about my contribution limits?