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
Like what you see? Subscribe to our blog via email to get the latest updates on HSAs, health insurance, wellness and company news!