Can My Spouse & I Both Have an HSA?

Qualified high-deductible health insurance plans permit you to have a health savings account to save money for medical expenses. The Internal Revenue Service limits the amount of money that can be contributed into your HSA every year because contributions are tax-deductible. While keeping records for your HSA is easier if you only have one health savings account, circumstances may exist where you benefit from having more than one account.

Contribution Limits

• Each year, the Internal Revenue Service sets a limit on the tax-deductible contributions that you can put into your HSA. In 2011, the limit for an individual HSA is $3,050 and $6,150 for family HSA plans. This is the maximum amount that can be contributed to an HSA on your behalf, either by yourself or your employer. Funds in your HSA do not need to be used by the end of the year and can rollover from year to year.

Catch-Up Contributions

• If you are 55 or older and not on Medicare, you are permitted to contribute an extra $1,000 catch-up contribution. If your spouse also meets these criteria, they are also eligible for a catch-up contribution. IRS Publication 969, page 6 specifically states that "Each spouse must make the additional contribution to his or her own HSA." This means that if you are both eligible for a catch-up contribution, you must each have an HSA account in your own name to take advantage of this benefit.

Dividing Contributions

• If you have multiple health savings accounts, you can divide the contributions any way you want. Contributions can still not exceed the limit for the year or they will be subject to a 10 percent excise tax, as will all of the earnings on the excess contribution amount. Funds in either account can be used to pay qualified medical expenses, even if they are for the other spouse.

Considerations

• If you have multiple health savings accounts, the beneficiary designation should be for your spouse to simplify consolidating accounts in the event that one of you passes away. The amount that can be contributed to your HSA may be prorated depending on when you acquired coverage on a high-deductible health insurance plan that is HSA qualified. If you have any questions about whether or not you or your spouse are eligible for the catch-up contribution, consult an accountant who is familiar with HSA administration.