What is a Spousal HSA? Understanding Health Savings Accounts for Married Couples

When it comes to health savings accounts (HSAs), married couples have the option to open a Spousal HSA, which allows both partners to contribute to a single HSA account. This can provide additional tax benefits and flexibility for managing healthcare expenses.

A Spousal HSA works much like a regular HSA, but with the added advantage of allowing contributions from both spouses. Here's how it works:

• Both partners can contribute to the same HSA account, regardless of who has the high-deductible health plan.
• Contributions made by either spouse are tax-deductible, up to the annual contribution limit.
• Funds in the HSA can be used to pay for qualified medical expenses for either spouse or their dependents.
• Any unused funds in the HSA roll over from year to year, making it a valuable long-term savings tool for healthcare costs.

By utilizing a Spousal HSA, married couples can maximize their savings potential and take advantage of the tax benefits that come with an HSA. It's essential to keep in mind the following key points:

• Both spouses must be eligible to contribute to an HSA, meaning they are covered by a high-deductible health plan and not enrolled in Medicare.
• The total contributions from both spouses cannot exceed the annual contribution limit set by the IRS.
• Contributions to the HSA must be made in cash and cannot be funded through a loan or gift.

Understanding a Spousal HSA is crucial for married couples looking to optimize their healthcare savings. With both partners able to contribute to a single Health Savings Account, it becomes a beneficial strategy for managing high medical costs.