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?
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.
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 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.