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Does a Spouse Covered Under HDHP Use the Same HSA Account?

Those who are insured by a high-deductible health insurance plan (as defined by the Internal Revenue Service) have the advantage of being able to open a health savings account (HSA). The IRS does not restrict the number of HSAs you can have open at one time, and there may be an advantage to you and your spouse opening separate HSAs, provided you don't exceed the contribution limit.

  1. Contribution Limits

    • Because contributions into an HSA are tax-deductible, the IRS sets a limit each year of how much can be deposited into an account. For 2011, a maximum of $3,050 can be deposited into an individual's HSA, while those who hold a family high-deductible health plan (including a married couple) can deposit $6,150. The IRS indexes contributions against the inflation rate, and usually sets limits for the following year some time in October.

    Catch-Up Provision

    • If you are at least 55 years old, you can contribute an additional $1,000 per year. If you and your spouse are both over 55, the only way you can each contribute the additional $1,000 is if you have separate HSAs. The language in the IRS regulations specifies that the additional contribution is per account. If you do not have separate HSAs and deposit $8,150 into a single HSA in one year, the IRS will assess an excise tax against $1,000 and consider it an "excess contribution."

    Record Keeping

    • Contributions into all HSAs that you have opened are reported annually on Form 8889 of your income tax return. If you fail to file Form 8889 with your tax return, the IRS will disallow any deductions you took for your HSA contributions and adjust your income tax liability accordingly. Unlike a flexible spending account (FSA), you do not need to use all of the funds deposited into your HSA within the same year, and the balance can accrue to pay for future medical expenses.

    Beneficiary Designation

    • If both you and your spouse are covered by high deductible health plans, you can use the same HSA. From a record-keeping perspective, monitoring deposits in one account is easier than managing multiple accounts. Having more than one account works to your advantage when you are both age 55 or older, as it enables you both to take advantage of the $1,000 additional contribution benefit. If you have more than one HSA open, the spouse that does not own the account should be designated as the beneficiary to simplify consolidating accounts in the event that one of you passes away.

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