How are HSA Contributions Calculated When Husband and Wife Have Separate Accounts?

When couples have separate HSA accounts, the contribution limits are determined individually as opposed to a combined total. Each spouse can contribute up to the maximum allowed for the year, provided they meet the eligibility criteria.

Here is how HSA contributions are calculated in this scenario:

• Each spouse can contribute up to the annual IRS limit for individual coverage or family coverage, depending on their insurance plan.
• If both spouses are over 55 years old, they can make catch-up contributions on top of the regular contribution limit.
• Contributions can be made through employer payroll deductions, individual payments, or a combination of both.
• Family contributions can be split between the two accounts in any way that suits the couple's financial situation.
• It's important to keep track of contributions to ensure they do not exceed the legal limits to avoid potential tax penalties.

When couples maintain separate HSA accounts, it's essential to understand that each partner's contribution limits stand alone and are not pooled together. Thus, each spouse has the opportunity to contribute up to the maximum defined by the IRS for that specific tax year.