HSA Confusion

[bill3173]

Caveat, not an agent.

You're saying a person covered by an HDHP can make a family contribution to HSA even if spouse is not covered by the HDHP?

Yes

 

[LostDollar]

I have a situation where the primary member of a group plan is staying on the plan while continuing to make HSA contributions, and the spouse/dependent wants to leave the plan and go on Medicare. Will she be able to enroll in Medicare without tax penalties if she herself hasn't made HSA contributions? Thanks in advance.

You can max (family) fund an HSA, as long as you're not on Medicare. Your spouse can enjoy the french benefit of having the $$ available for her medical expenses.

Caveat, not an agent.

You're saying a person covered by an HDHP can make a family contribution to HSA even if spouse is not covered by the HDHP?

Yes

Caveat, not an agent.

I believe that is an inappropriate and dangerous position for you to take with your clients.

Reading in IRS publication 969 suggests to me that one must have a family HDHP in order to make a family HSA contribution. Having dependents that would be eligible to SPEND HSA funds does not automatically mean that the holder of an HDHP plan can make a family HSA contribution.

OP's post does not suggest OP's prospect has other dependents besides the spouse to justify family coverage, the post implies that the prospects coverage will change to single coverage, therefore prospect would only be able to make single contributions to the HSA account going forward.