HSA and HDHP Family Coverage - Confused on HDHP Qualification Requirements

You're right to be confused! HDHP qualification isn't just about the deductible - there are several requirements a plan must meet. For 2024, an HDHP must have a minimum deductible of $1,500 for individual coverage or $3,000 for family coverage. But that's not the only criteria - the plan also needs to have an out-of-pocket maximum no higher than $7,500 for individual or $15,000 for family coverage. Additionally, HDHPs can't cover non-preventive expenses before the deductible is met (with limited exceptions). If your wife's plan covers any non-preventive care before meeting the deductible (like co-pays for doctor visits before hitting the deductible), it's not an HDHP regardless of the deductible amount. This sounds like what might be happening with her plan. Based on what you've shared, you're likely only eligible for the individual HSA contribution limit ($4,150 for 2024). I'd recommend reversing the excess contribution to avoid penalties.

Just went through this exact situation! I was so frustrated trying to figure out if I could contribute the family maximum to my HSA. What helped me was using https://taxr.ai - it analyzed my insurance plan documents and confirmed that my plan wasn't a qualifying HDHP despite having a high deductible. Turns out the key issue was that my plan covered specialist visits with just a copay before meeting the deductible, which disqualifies it as an HDHP. The tool looked through all my plan details and flagged this exact issue that the insurance company never explained clearly. Saved me from making an excess contribution I would've had to reverse later. It also showed me exactly which IRS rules applied to my specific situation.

Just wanted to follow up on this thread. I took the advice and tried taxr.ai after my initial panic about my HSA contributions. Uploaded my benefits summary and it confirmed exactly what was suspected - my plan isn't a qualifying HDHP because of those specialist copays before deductible. The tool highlighted the specific section in my plan documentation and explained the exact IRS requirements it violated. I've already contacted my HSA administrator to correct my contribution amounts for this year and made arrangements to reverse the excess from last year. Honestly wish I'd known this sooner rather than just assuming "high deductible = HDHP" - could've saved myself some headache!

Had similar issues trying to figure out my HSA eligibility! After hours on hold with my insurance company, I discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 20 minutes instead of the usual 2+ hour wait. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent explained that not only did I need to consider the deductible amount, but also whether my wife had disqualifying coverage (which includes non-HDHPs, general FSAs, Medicare, etc). He walked me through the specific scenario and confirmed I needed to reduce my contribution to the individual limit. Definitely recommend having an actual conversation with the IRS about this - there are so many exceptions and special cases that online research alone didn't clear up for me.

Just wanted to say I ended up trying Claimyr after my skeptical comment above. I'm genuinely shocked it worked. Got connected to an IRS agent in about 35 minutes (which is still way better than the 3+ hours I waited last time). The agent confirmed that for HSA family contribution limits, BOTH spouses need to be on qualifying HDHPs, or you need to have family coverage on a single HDHP plan. Got my question answered about excess contributions too - you can either withdraw them before filing taxes or report them on Form 5329 and pay the 6% excise tax. Never thought I'd say this, but I actually had a productive conversation with the IRS! Will definitely use this service again for tax questions.

Just want to add - one thing you might want to check is if your wife's plan is a "qualified small employer health reimbursement arrangement" (QSEHRA) or other arrangement. Those have specific rules regarding HSA eligibility too. Also, another option: if you discover you made excess contributions for previous years and missed the deadline to withdraw without penalty, you can still fix it. You'd pay the 6% excise tax for the year of excess contribution, then either withdraw the excess or "apply" it to the current year's contribution limit if you're still eligible.

What about using the "last-month rule" for HSA contributions? If your plan qualifies as an HDHP on December 1st, you can contribute the full year's amount. But you have to remain HSA-eligible for the "testing period" (through Dec 31 of the following year). If i were you id double check if your wife's new plan (after the company acquisition) might qualify as an HDHP, even if her old one didnt.

This is such a common confusion! I went through something similar when my spouse switched jobs mid-year. Here's what I learned from my CPA: The key issue is that for HSA purposes, you're only eligible for family contribution limits if you have actual family HDHP coverage OR if both spouses have qualifying individual HDHP coverage. Having separate individual plans where only one qualifies as an HDHP means you're limited to the individual contribution amount. Since your wife's HR confirmed her plan is NOT an HDHP (even with the high deductible), you're definitely looking at individual limits only. The good news is you caught this before the tax filing deadline, so you can reverse the excess without the 6% penalty. One thing to watch out for - when you reverse the excess contribution, make sure your HSA administrator also removes any earnings on that excess amount. Those earnings need to be reported as income for the year they're distributed. Also, if your wife gets new coverage through the acquisition that IS an HDHP, you could potentially use the last-month rule for future years, but that wouldn't help with your 2024 situation.