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Thursday, April 16, 2015

A little catch-up about the HSA “catch-up”:

One of the perks of being a wise and mature person of 55 is the HSA catch-up.  Each year the IRS allows you to “catch up” on funding your HSA.

If you are the primary on the HSA and are 55+, you can make the extra funding.

  • If you have family coverage, you can fund the contribution limit of $6,550 (2015) and throw in $1,000 to bring the total to $7,650
  • It’s the same if you have single coverage.  $3,350 + $1,000 = $4,350 into your HSA.

But wait! What if my spouse is also 55+?

IRS regulations specify, only the primary on the HSA can make the catch-up contribution.  That’s because the tax reporting is done under that person’s social security number.

That being said, there’s always a way to squeeze a few extra dollars into your HSA.  Let’s look at an example:

Steve and Kate have a high deductible family plan.  Every year they contribute the maximum to their HSA.  The money is always there to cover those medical expenses that arise in a family of four.  Steve turned 55 in 2013.  Kate turns 55 in November, this year.

The perk to getting older for Steve is he can fund the $1,000 catch-up for 2015.

The perk to getting older for Kate is she can now open an HSA to fund her own $1,000 catch-up.

The family contribution amount of $6,650 can be divided between the two accounts in whatever fashion they choose.

Not a bad idea, considering their son Baird is starting lacrosse this year.  They can use the extra funds and tax savings.

Remember, we are your HSA specialists.  If you have a question contact us, we have the answer (If we don’t, we’ll find it)!

Blog Written By: Robin Vankleek


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Posted by HSA Admin at 4/16/2015 9:52:00 PM
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