Combed the internet and wasn't able to find clear guidance so figured I try here.
So the situation is that I'm currently on a COBRA Family HDHP plan through my former employer. I confirmed with the HSA provider that I'm eligible to contribute the Family amount ($8,300) to my HSA for 2024 even though I'm under COBRA. The issue is that on July 1, my wife and I will go onto our own separate workplace provided HDHP plans (my former employer is only subsidizing my COBRA premiums through 6/30). I will have an individual plan and she will take the kids into a family HDHP plan. I've already contributed $4,800 to my HSA thus far and the question is: how much can my wife and I each contribute to our own HSAs for the remainder of the 2024 year?
From the research I did online, I was only able to find examples and explanations of the Full Contribution Rule which essentially says that I'm allowed to contribute the higher of either (1) the average allowable contribution between the Family and Individual (so $6,225) or (2) the allowable contribution based on my Individual status as of Dec 1 (so $4,150). So it appears that I can contribute another $1,425 (difference between $6,225 and the $4,800 I already contributed) - I think this part is straightforward. What I'm unclear about is how much can my wife contribute. Since she will have a family plan as of Dec 1, does that mean she can contribute the full $8,300 in 2024? If so, that would mean that as a family, we've contributed $14,225 to the HSA this year and I thought the limit was $8,300 for a family. When I called my HSA administrator, the customer service agent seemed to confirm this was the case but she didn't feel too sure that I wouldn't be over-contributing past the IRS limits. Seems to be a loophole.
So the situation is that I'm currently on a COBRA Family HDHP plan through my former employer. I confirmed with the HSA provider that I'm eligible to contribute the Family amount ($8,300) to my HSA for 2024 even though I'm under COBRA. The issue is that on July 1, my wife and I will go onto our own separate workplace provided HDHP plans (my former employer is only subsidizing my COBRA premiums through 6/30). I will have an individual plan and she will take the kids into a family HDHP plan. I've already contributed $4,800 to my HSA thus far and the question is: how much can my wife and I each contribute to our own HSAs for the remainder of the 2024 year?
From the research I did online, I was only able to find examples and explanations of the Full Contribution Rule which essentially says that I'm allowed to contribute the higher of either (1) the average allowable contribution between the Family and Individual (so $6,225) or (2) the allowable contribution based on my Individual status as of Dec 1 (so $4,150). So it appears that I can contribute another $1,425 (difference between $6,225 and the $4,800 I already contributed) - I think this part is straightforward. What I'm unclear about is how much can my wife contribute. Since she will have a family plan as of Dec 1, does that mean she can contribute the full $8,300 in 2024? If so, that would mean that as a family, we've contributed $14,225 to the HSA this year and I thought the limit was $8,300 for a family. When I called my HSA administrator, the customer service agent seemed to confirm this was the case but she didn't feel too sure that I wouldn't be over-contributing past the IRS limits. Seems to be a loophole.
