HSA Question

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"Kurt Ullman" wrote:

No problem.

Each spouse is an eligible individual. "To be an eligible individual ...

• You have a high deductible health plan ...

• You have no other health coverage except what is permitted ...

• You are not enrolled in Medicare ...

• You cannot be claimed as a dependent on someone else's [] tax return
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  You and your spouse each meet the first requirement (HDHP), under the "Rules for married people. If either spouse has family coverage, both spouses are treated as having family coverage."
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  Now that we've established that each of you is eligible and can own a separate HSA, we just need to check on the catch up provisions: "If both spouses are 55 or older and not enrolled in Medicare, each spouse's contribution limit is increased by the additional [catch up] contribution." (same citation, a few lines down). Don't rely on the 2006 Pub 969 for the family contribution limits. These were changed for 2007: "The following new rules apply to health savings accounts for 2007. For details on these changes, see Pub 554, Highlights of 2006 Tax Changes ... Your contributions to your HSA are no longer limited to your annual health plan deductible."
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  Basic idea is that you have ,650 for a family that can be split any way you like between the two spouses. Then each spouse can add an extra 0 catch up amount. These figures are for 2007 only.
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  (2007 limits) The Pub 969 rules for married people (cited above) states that "the contribution limit is split equally between the spouses unless you agree on a different division." In other words, split the ,650 any way you like. Mark Freeland snipped-for-privacy@sbcglobal.net

Publication 969 - Main Contents

Each spouse who is an eligible individual who wants an HSA must open a separate HSA. You cannot have a joint HSA. Milt Baker CPA

Thanks for all who helped. Since we had a "joint" or family high deductible policy, I did not know if we had to have a joint account. Interesting how much dumb stuff is floating around by people who should know better. As I mentioned two (rather large) banks indicated I had to have one account. Two said they only offered money markets and no mutual funds because the accounts are such that you are supposed to spend all the money every year. Most of this was from HQ and the HSA 800 number and not just an indication of confusion at the Branch.