Posts Tagged ‘Medicare’

Who is eligible to open and contribute to an HSA?

Tuesday, August 11th, 2009 by WPJ

To open or contribute to an HSA you must meet certain eligibility requirements. Specifically:

  • You must be covered by a qualified high deductible health plan on the first day of the month
  • You cannot be covered by any other health plan that is not a qualified high deductible health plan, including spouse’s health insurance
  • You cannot be covered by spouse’s Medical FSA
  • You cannot be enrolled in Medicare Part A or Part B
  • You cannot be covered by TriCare
  • To make contributions you cannot have accessed your VA medical benefits in the past 90 days
  • You may not be claimed as dependent on another person’s tax return

Please feel free to contact us if you have any questions about HSAs with Health Savings Administrators.

My spouse is covered by Medicare and our family HDHP – what are my contribution limits?

Wednesday, November 19th, 2008 by WPJ

The account holder in this scenario has family coverage and is therefore eligible to contribute the family limit . They may also contribute the catch-up amount, if he or she is age 55.

The spouse is an “ineligible individual” in the eyes of the IRS. The IRS allows married couples to assign the tax deduction to each spouse in whatever proportions they deem appropriate. As long as the tax deductions are allocated to the eligible spouse (a paper assignment for those filing jointly) the fact that one one spouse is “ineligible’ has no impact on the HSA contribution limits in this case.    (IRS guidance 2004-50 Q&A 31, example 5 and Q&A 32)