About three years ago, we answered a reader's email about HSA's and retiree medical coverage. Recently, we received a follow-up email from another reader:
"Hello,
I just read your ... entry on HSA's and those eligible for Medicare. We have a related question: If the employee is 63 and has an HDHP with an HSA, and his wife is 65 and has Medicare Parts A and B, can she still be on his HDHP? Can he make the family contribution amount into the HSA, ie $6150 plus his catch up contribution since he is the employee and is not on Medicare and he is the eligible employee and she is the dependent?
Or, is she just not able to participate in the HSA so therefore he can only make a single HSA contribution of $3050 plus his catchup contribution?
Thank you,
[Loyal Reader]"
We're always happy to answer our readers' questions, and sometimes (such as in this case) share them as a post (maintaining anonymity, of course). It seems to me that, as the Boomers come of age, a lot of folks will be asking these questions. So, I turned to our own on-call FlexBenefits guru, Alissa Culp of FlexBank. Alissa's graciously answered our questions (which I've already forwarded to our correspondent):
Q: If the employee is 63 and has a HDHP with a HSA, and his wife is 65 and has Medicare Part A and Part B, can she still be on his HDHP?
A: Yes.
Q: Can he make the family contribution amount ... ie $6150 + his catch up contribution?
A: He can make the family contribution only if he has family coverage.
Q: Is she just not able to participate in the HSA ... he can only make a single HSA contribution of $3050 plus his catchup contribution?
A: His maximum contribution into his HSA depends on his coverage type. If he has family coverage, he can contribute the family maximum. If he has single coverage, he can contribute up to the single maximum.
Alissa also sent along a helpful guide that expands on some of this information; drop us a line if you’d like a copy.
Thanks, Alissa and [Loyal Reader]!
"Hello,
I just read your ... entry on HSA's and those eligible for Medicare. We have a related question: If the employee is 63 and has an HDHP with an HSA, and his wife is 65 and has Medicare Parts A and B, can she still be on his HDHP? Can he make the family contribution amount into the HSA, ie $6150 plus his catch up contribution since he is the employee and is not on Medicare and he is the eligible employee and she is the dependent?
Or, is she just not able to participate in the HSA so therefore he can only make a single HSA contribution of $3050 plus his catchup contribution?
Thank you,
[Loyal Reader]"
We're always happy to answer our readers' questions, and sometimes (such as in this case) share them as a post (maintaining anonymity, of course). It seems to me that, as the Boomers come of age, a lot of folks will be asking these questions. So, I turned to our own on-call FlexBenefits guru, Alissa Culp of FlexBank. Alissa's graciously answered our questions (which I've already forwarded to our correspondent):
Q: If the employee is 63 and has a HDHP with a HSA, and his wife is 65 and has Medicare Part A and Part B, can she still be on his HDHP?
A: Yes.
Q: Can he make the family contribution amount ... ie $6150 + his catch up contribution?
A: He can make the family contribution only if he has family coverage.
Q: Is she just not able to participate in the HSA ... he can only make a single HSA contribution of $3050 plus his catchup contribution?
A: His maximum contribution into his HSA depends on his coverage type. If he has family coverage, he can contribute the family maximum. If he has single coverage, he can contribute up to the single maximum.
Alissa also sent along a helpful guide that expands on some of this information; drop us a line if you’d like a copy.
Thanks, Alissa and [Loyal Reader]!
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