Family HSA until 9/15/24, then single plan for rest of 2024, contribution limits calculation?
Jane Doe DOB 9/15/1959
John Doe DOB 3/15/1960.
John and Jane Doe had a family HDHP insurance plan on 1/1/2024. Jane is turning 65 and going onto medicare on 9/15/24. At that point, John will switch to a Single person HDHP plan for the rest of 2024.
How do you calculate how much each of them can contribute to an HSA in 2024?
Permalink Submitted by Alan - IRA critic on Tue, 2024-09-03 20:00
Her contribution limit will be 75% of the full annual (9 months) or 5,150 X 75% = 3862.50. This includes the 1000 catchup contribution. His limit will be the full annual 5,150.
Permalink Submitted by Jon Steffen on Wed, 2024-09-04 09:48
So, even though they’re on a Family plan for 9 months, you still calculate her contribution limit based on the single person HSA contribution limit?
I thought it should be 75% of $9300 (Family $8300 plus $1000 catch up) = $6975 for her and $1000 catch up for him, plus 25% of a single limit $4150: $1000+(0.25*$4150)= $2,037.50.
The weird thing is if you add your 2 numbers together you get $9012.50………………If you add mine together (calculated totally differently) you also get $9012.50.
Permalink Submitted by Jon Steffen on Wed, 2024-09-04 09:51
HAHAHAHAHA.
I just realized the Family $8300 is exactly 2X of an individual $4150, so either way will get the same answer, but which operation to calculate it is correct?
In 2023 the contribution limits for individual were $3850 and Family was $7750. This is not exactly 2X, so the way you calculate it does matter for some years. Just wondering which way is right. Thank you.
Permalink Submitted by Jon Steffen on Mon, 2024-09-09 11:03
Does anyone know the correct way to do the math for this question?