Maximum Hsa Contribution for Two Married Family Over 55
Regardless of whether this reflects sound economic strategy (depending on employer contributions), personal preference, or is the result of spousal carve-outs instituted by employers as a cost-mitigation strategy, having two working spouses each go on their own individual loftier-deductible health plans (HDHP) increases the risk of overfunding health savings accounts (HSAs). This is non unlike the situation some married couples discover themselves in when they accidentally overfund their Dependent CareFSA by each accidentally maxing out their contributions through their individual employers. Dissimilar final year when the IRS adjusted HSA contribution limits multiple times during the yr, the 2019 HSA contribution limits are ready and adequately straightforward. They are equally follows: These represent a $50 increase for individuals and a $100 increase for families compared to last yr's numbers. The take hold of-upward limit has remained unchanged. (All of these figures include both employer and employee contributions.) When just one person is contributing to an HSA, these limits are like shooting fish in a barrel to apply. A bank representative can explain the business relationship to them and help them make contributions that don't exceed the applicative limit. In situations that involve two spouses, however, staying within the contribution limit becomes a little more involved. There are multiple scenarios that must be considered when looking at possibilities involving two spouses. First, i spouse might non have HDHP coverage while the other one does. In these situations, the ane spouse without coverage doesn't factor into HSA contribution limits because they don't qualify for such an account. The other spouse'southward contribution limits will be the self-simply limit, the family unit limit (if at that place are children), or one of those plus the take hold of-upwardly limit. Second, both spouses might take their own self-only HDHP and corresponding HSAs. In these situations, each spouse is subject area to the cocky-merely coverage limit. They can still contribute upwardly to $7,000 in 2019 ($3,500 + $iii,500), merely it must exist divided between the two accounts. Two carve up HSAs don't authorize for the family coverage limit. Tertiary, both spouses may have HDHPs, but ane plan might provide family coverage for a spouse and \ children. In these situations, the couple is discipline to the family unit contribution limit of $7,000. The other spouse's self-only HSA doesn't increase their contribution limit at all. Information technology only allows them to put up to $3,500 in that account if they and so choose. Alternatively, the full $seven,000 (or any fraction thereof) could exist put into the account that covers the children and one spouse. Fourth, both spouses might be covered in a family HDHP merely each maintains their own HSAs. In these situations, the family contribution limit of $vii,000 still applies just information technology can exist divided betwixt the HSAs in any ratio. Contributions can be put fully into one spouse's HSA, split half-and-half between the two HSAs, or divided any other way. Once the contribution limits for two spouses has been adamant, what each spouse is contributing must be conspicuously communicated. This is especially important in the latter two scenarios, where each spouse is making separate contributions to HSAs -- and those HSAs could be held at dissimilar financial institutions. An account adviser tin't be expected to know what a spouse is doing at another fiscal institution, so it's ultimately up to the spouses to understand how these limits work and share with each other what contributions they're making. This is where employers' human resources representatives are often extremely helpful and provide a lot of value to employees. Even though 60 minutes representatives typically don't actually fix up HSAs for employees, HR reps tin can provide information on these accounts and guidance on how to set up them upwardly. They tin even tailor recommendations to employees' detail situations, and many employees are likely to trust advice from their own 60 minutes section versus a fiscal institution's representative that they've never met (and might only talk to over the phone). 60 minutes reps should make sure employees understand that HSA contribution mistakes can be corrected. Sharing this often eases employees' concerns and fears when they're trying to digest all of the data regarding HSAs and take appropriate actions. Overfunding an HSA can exist remedied 1 of 2 means; The first and best way to correct this mistake is to remove the excess contributions and the net income owing to the excess contribution before filing a federal income tax return (including extensions). This remedy will result in paying normal income taxation on the excess funds removed from the HSA. The 2d method to deal with this is to go out the backlog contributions in the HSA and pay a half-dozen% excise tax on this amount. The problem with this arroyo is that the 6% excise tax is applied annually, apace wiping out any tax-advantaged benefits HSA accounts provide. If employees choose to go this route, they can opt to have the HSA contribution in excess of the almanac limit applied to the post-obit year's contribution. That said, they will have to pay an excise taxation any twelvemonth that amount leads to a contribution overage. Whether your visitor is new to offering HDHPs or already provides these plans to many employees, our representatives are here to help you with all HDHP and HSA-related needs. If y'all'd similar to learn more about HDHPs and HSAs, contact us today. Are you offering HSAs & HDHPs to your workforce? Are your employees familiar with the electric current contribution limits? Exit us a comment orcontact us. We'd beloved to hear from you! 
An increasing number of married employees are obtaining health insurance coverage through their own plans rather than their working spouses'. HSA Contribution Limits for 2019
Determining Limits with Two Spouses
Communicating Contributions with Ii Spouses
Correcting Mistakes When an HSA Gets Overfunded
Learn More Most HDHPs & HSAs for Your Employees
Source: https://www.griffinbenefits.com/blog/how-hsa-contribution-limits-work-for-spouses-and-multiple-accounts
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