HSA Question

[somarco]

Soc Sec backdates the Part A start date 6 months.

OK, I missed this earlier . . . but it is Medicare that backdates Part A, not SSA.

 

[EckoRomeo]

OK, I missed this earlier . . . but it is Medicare that backdates Part A, not SSA.

Nah…

 

[axeman462]

If enrolling in Medicare A after age 65, note that Part A is backdated up to 6 months from the date of the application but not before the 65th birthday.

And there are no joint HSA's. Each spouse has their own account.

and just for clarification for any of those reading and are not familiar with HSAs, while its true that there are not any joint accounts with HSAs, both spouses can still benefit from one of them owning just one account.

For example, for simplicity, my wife and I only have one HSA account in my name, but we can still contribute the full family amount of $8,550 and benefit tax wise because of it, since we file jointly. Further, my wife can still use the funds as she is an "authorized user" on the account.

 

[kstein]

If you mean fully fund with a family level of contribution, that is not allowed.

If the T65 spouse takes part A, as Chazm said, they can contribute prorated amount up to the month they take Part A. (Note: I'd have to check the proper IRS pub to be sure, but I believe the catchup amount must be prorated as well as the base contribution.

The under 65 spouse can contribute for the full year, to their account.

I disagree. The family HSA account. And the family HSA policy is in the employee onlys name. So if the t65 spouse takes part A the employees situation is unchanged.

 

[kstein]

Another unknown situation is when Mom and Dad have an HSA eligible kid who is not claimed as a dependent on their tax return but is under the age of 26. They can do a family HSA contribution into their account and then open up another HSA and make a full individual contribution for the child.

 

[LostDollar]

I disagree. The family HSA account. And the family HSA policy is in the employee onlys name. So if the t65 spouse takes part A the employees situation is unchanged.

Another unknown situation is when Mom and Dad have an HSA eligible kid who is not claimed as a dependent on their tax return but is under the age of 26. They can do a family HSA contribution into their account and then open up another HSA and make a full individual contribution for the child.

Hi. Thanks for the measuredness of your response.

I respect your experience on this one.

 

[LostDollar]

I would like to continue to discuss this and have someone point out where it says the under 65 employee can't contribute the family maximum if the 65+ employee enrolls in Part A. Everything I read indicates the opposite and I think there is confusing regarding the rule. Here's just a couple of the items I find online on published FAQs:

1) Note: If your spouse is age 65 or over and has applied for or begun receiving Social Security benefits (and is entitled to or enrolled in Medicare), he or she cannot contribute to an HSA. You may contribute up to the family maximum provided your spouse is enrolled as your dependent under your HDHP coverage.

2) Question: I am married, covered by a family HDHP with an HSA. My spouse is enrolled inMedicare but also covered under the family HDHP. Can I still contribute to the HSA?

Answer: Yes, being eligible to contribute to the HSA is determined by the status of the HSA accountholder not the dependents of the account holder. Your spouse being on Medicare does not disqualify you from continuing contributions to the HSA up to the family limit, even if they are also covered by the HDHP.

Ok, the discussion got continued. You have confirmation for your position from another quite experienced agent.

Looks like I was wrong on this issue.

The fact that the "family" contribution equals two "individual" contributions was confusing to me.

The example cited from the IRS pub went to a dependent child, not to a spouse as a specific example.

And I think I was getting mixed up with rules on page 4 and rules on page 7 for married couples.

Anyway, it seems your position is the correct one.

 

[LostDollar]

OK, I missed this earlier . . . but it is Medicare that backdates Part A, not SSA.

Alright, I will respect your knowledge on this one.

Social Security handling the applications confuses me on who controls issuance of the effective dates.

 

[LostDollar]

and just for clarification for any of those reading and are not familiar with HSAs, while its true that there are not any joint accounts with HSAs, both spouses can still benefit from one of them owning just one account.

For example, for simplicity, my wife and I only have one HSA account in my name, but we can still contribute the full family amount of $8,550 and benefit tax wise because of it, since we file jointly. Further, my wife can still use the funds as she is an "authorized user" on the account.

A thing to keep in mind which this thread pointed out to me is:

When you both become eligible to make catchup contributions, you will each have to have your own HSA account to make those.

 

[cmlynch100]

It really shouldn't be this confusing, but I guess I guess I should expect nothing less from the government. Hopefully we can all be confident and advise the clients appropriately on it.