HSA contribution limit question - Can both spouses over 55 make catch-up contributions with one family HSA plan?

Wait, so does that mean if my spouse doesn't have their own HSA account, we'd lose out on one of the catch-up contributions? We're both over 55 but we've just been putting everything into my HSA account.

Yes, that's exactly right. If you only have one HSA account, you can only make one catch-up contribution of $1,000. That's because the catch-up contribution must be made to the HSA belonging to the eligible individual who is 55 or older. So if you and your spouse want to maximize your HSA contributions, you would need to each have your own HSA account. The regular family contribution limit can be split between accounts however you choose, but each catch-up contribution needs to go into the specific person's account.

Did it help with figuring out the process of opening that second HSA account? My husband has one through his work but I don't have my own, and I'm not sure how to start that process since I'm on his insurance plan.

Is this service free? Sounds useful but I'm already spending so much on tax prep software every year.

The service walked me through exactly how to open a second HSA account even though we're on a single family plan. It showed me several HSA providers with low/no fees and even had templates for the forms I needed to fill out. Super helpful because my wife isn't employed but could still open her own HSA. As for cost, I don't want to get into specific pricing, but I found it much more affordable than what I was paying my accountant for consultations on these kinds of specialized tax questions. For me, the peace of mind knowing we were maximizing our contributions correctly was worth it.

Wait, so this service gets you through to an actual IRS person? How does that even work? I've tried calling them multiple times about my HSA questions and always get disconnected or have to wait hours.

Sounds like a scam. Why would I pay someone else to call the IRS for me when I can do it myself for free? The IRS website clearly explains HSA rules anyway.

It uses a system that navigates the IRS phone tree and waits on hold for you, then calls you once an actual agent is on the line. It saved me literally hours of being on hold, and I got to speak with a real human who answered all my HSA questions. The IRS website does have the information, but it's spread across different publications and can be hard to interpret for specific situations like having two HSAs with one family plan. The agent I spoke with actually pulled up my specific tax history and gave personalized advice about how to handle both our HSA accounts correctly.

Does it matter how you split the base $8,300 family contribution between the two accounts? Like could I put $7,300 in mine and $1,000 in my spouse's, or does it need to be more evenly split?

You can split the base $8,300 family contribution any way you want between the two HSA accounts. There's no requirement for it to be even or proportional. In our case, we found it easier to put the entire family portion in my account since that's the one linked to my employer's payroll deduction. Just remember that each person's catch-up contribution ($1,000) must go into their own account. So if you wanted to, you could put $8,300 in your account plus your $1,000 catch-up, and then just have your spouse's account receive only their $1,000 catch-up contribution.

I wouldn't worry too much about previous years. You weren't exceeding your allowed contribution limit - you were just not maximizing what you could have contributed. The IRS generally doesn't penalize you for contributing less than you're allowed. Just fix it going forward if you want to get that extra $1000 catch-up contribution for your wife.

That's really helpful! I like your approach of having the full family contribution go through payroll deduction - makes it much simpler. One quick question though: when you say the family contribution can be "split however you want," does that create any tax implications? Like if most of the money goes into one person's HSA vs the other? I'm wondering if there are any advantages to splitting it more evenly between accounts.

Great question! There aren't any direct tax implications from how you split the family contribution between HSA accounts - both accounts provide the same tax deduction benefits. However, there can be some strategic advantages to consider. For example, if one spouse is in a higher tax bracket, it might make sense to have more of the contribution go into that person's HSA for maximum deduction benefit. Also, some people prefer to keep one HSA as their "investment account" (letting it grow for retirement healthcare) while using the other for current medical expenses. In practice though, since you're married filing jointly, the tax benefit is the same regardless of which account the money goes into. We just found the payroll deduction method convenient since it comes out pre-tax automatically!

Thank you for sharing your experience! The spreadsheet tracking idea is brilliant - I hadn't thought about how important it would be to document the breakdown for tax purposes. Quick question about the employer policies you mentioned: did you run into any issues with your employer's HSA administrator when setting up contributions to two different accounts? I'm wondering if there are any limitations on how they can split payroll deductions between multiple HSA accounts, or if it's easier to just have the employer contribute to one account and then manually transfer funds to the other spouse's HSA later. Also, when you say "get confirmation in writing," did you mean from the HSA provider directly, or is there an IRS publication that spells this out clearly? I want to make sure I have the right documentation if questions come up later.

Great questions! For the employer side, we actually found it easier to keep all payroll HSA contributions going to my account (since that was already set up with HR) and then we just make manual contributions to my wife's HSA account throughout the year. Some employers can split payroll deductions between multiple HSA accounts, but the paperwork and setup can be complicated. For documentation, I'd recommend getting it from both sources if possible. The IRS has Publication 969 that covers HSA rules in detail, including the catch-up contribution requirements. But I also got written confirmation from our HSA provider (Fidelity in our case) that specifically addressed our situation with two accounts under one family plan. Having both gives you extra peace of mind! One tip: when making those manual contributions to the second spouse's account, just make sure you're staying within the annual limits and keeping good records of the timing. We usually make quarterly contributions to my wife's account to spread it out evenly.

Great question about HSA providers for smaller balances! I actually researched this exact issue when setting up my spouse's account. Fidelity has been excellent for us - no minimum balance requirements and no monthly maintenance fees. They also have a good selection of investment options once you build up a larger balance. Another option to consider is Lively, which specifically caters to HSAs and has very low fees. Some of the traditional bank HSAs (like at local credit unions) can have monthly fees that would eat into a $1,000 annual contribution pretty quickly. One thing I learned: even if you're only putting in $1,000 the first year, if you plan to let that money grow for future healthcare expenses, you want to pick a provider with good investment options. That $1,000 catch-up contribution each year can really add up over time, especially if you're not using it for current medical expenses. Also, some providers offer family account linking features that make it easier to manage multiple HSAs from the same household - definitely worth asking about when you're shopping around!

This is such a helpful breakdown, thank you! I'm a newcomer to HSA planning and this whole thread has been a goldmine of information. The "pool" analogy for the family contribution limit really clarifies things for me. I'm in a similar situation - just turned 55 and my spouse will be 55 next year. We currently just have one HSA through my employer, but it sounds like we'll definitely want to set up a second account when my spouse becomes eligible for the catch-up contribution. One question: when you say your wife "contributes her $1,000 catch-up directly to her account," do you mean she writes a check or does online transfers? I'm wondering about the logistics of making contributions to an HSA that isn't connected to an employer's payroll system. Are there any timing considerations or deadlines I should be aware of for these manual contributions? Thanks again - this community has been way more informative than any official resource I've found!