How Newlyweds Can Use Your Hsa Account

A Health Savings Account (HSA) is a tax-advantaged savings account that can be used to pay for medical expenses. It is an increasingly popular option, with 35.5 million accounts holding roughly $104 billion in assets in 2022. HSAs are individual accounts, and while a newlywed cannot share an HSA with their spouse, there are still ways that a newlywed can benefit from their spouse's HSA. For example, a spouse can use their HSA funds to pay for their partner's medical expenses, even if the partner doesn't have an HSA or a high-deductible health plan (HDHP). Additionally, if both spouses are HSA-eligible and either has family-qualified HDHP coverage, their combined contribution limit is the annual statutory maximum amount for individuals with family-qualified HDHP coverage.

Spouses cannot share an HSA

If both spouses are HSA-eligible and either has family-qualified HDHP coverage, their combined contribution limit is the annual statutory maximum amount for individuals with family-qualified HDHP coverage. This is true even if one spouse has family-qualified HDHP coverage and the other has self-only qualified HDHP coverage. The couple's total HSA contributions still may not exceed the family maximum contribution limit.

If both spouses work for the same employer, they may not both contribute to a single HSA via payroll deduction. They may each contribute to their individual accounts via payroll deduction and then use funds from either HSA to pay for each other's medical expenses. Alternatively, they can choose to have only one spouse open an HSA and contribute to it.

If both spouses are HSA-eligible, they must have separate accounts

If both spouses are eligible for a Health Savings Account (HSA), they must open separate accounts. This is because the Internal Revenue Service (IRS) treats married couples as a single tax unit. This means that if one or both spouses are using a qualified family health plan, they must share a single family HSA contribution limit.

For 2024, the self-only maximum contribution limit is $4,150, and the family contribution limit is $8,300. If both spouses have self-only coverage, each spouse may contribute up to the annual individual maximum in their own account each year. If both spouses are covered by a family health plan, they can each contribute up to the family maximum to their own HSAs.

A married couple maintaining two HSAs, with one spouse having family coverage and the other with self-only coverage, has three options:

• Split the family contribution evenly between the spouses
• Allocate it according to a specific division they both agree on
• Put 100% in one spouse's account

It is important to note that the combined yearly contributions for both spouses must not exceed the annual family maximum. Additionally, two spouses may not contribute to a single HSA via payroll deduction.

Spouses can use their HSA funds to pay for each other's medical expenses

While there is no such thing as a joint HSA account, a newly married couple can still benefit from having individual HSA accounts. Spouses can use their HSA funds to pay for each other's medical expenses, even if the other spouse does not have an HSA or a high-deductible health plan (HDHP). This is also true for any dependent children claimed on the income tax return.

For example, if one spouse has individual-only HMO coverage and is not eligible to make HSA contributions, the other spouse can participate in a qualified HDHP and enroll in family coverage. This second spouse can contribute to their HSA and use the funds to pay for their partner's eligible medical expenses.

It is important to note that if either spouse has non-HDHP family coverage that covers both spouses, they are both ineligible to make contributions to an HSA. However, if one spouse has individual-only coverage under a traditional medical plan, and the other has any coverage under a qualified HDHP, the spouse with the qualified HDHP can contribute to an HSA and use the funds for eligible medical expenses for their spouse and tax dependents.

If both spouses work for the same employer, they may not both contribute to a single HSA

If both spouses work for the same employer, they are subject to specific regulations regarding contributions to their Health Savings Accounts (HSAs).

Firstly, it's important to note that there is no such thing as a joint HSA. Even if both spouses are covered by a family high-deductible health plan (HDHP), HSAs are individual accounts by nature and by definition of the IRS.

With that in mind, if both spouses work for the same employer, they may not both contribute to a single HSA via payroll deduction. This is a current rule that applies to spouses working for the same employer.

However, there are a few options available to them:

• Each spouse may open and contribute to their own individual HSA. In this case, they can use funds from either HSA to pay for each other's medical expenses. This option allows both spouses to take advantage of employer contributions and any catch-up contributions if one spouse is 55 or older. It's important to ensure that the combined yearly contributions for both spouses don't exceed the annual family maximum.
• Only one spouse opens an HSA, and only that spouse contributes to it. This option may be simpler, but it means the other spouse cannot contribute to the HSA or take advantage of employer contributions.

The IRS treats married couples as a single tax unit, so it's important to be mindful of contribution limits. For 2024, the self-only maximum contribution limit is $4,150, and the family contribution limit is $8,300. These limits increase to $4,300 and $8,550, respectively, for 2025.

Spouses can take advantage of tax benefits by maintaining individual accounts

While there is no such thing as a joint HSA account, there are still many benefits to be gained from HSAs when you get married. Spouses can take advantage of tax benefits by maintaining individual accounts, and there are specific rules regarding this scenario.

Firstly, it is important to note that the Internal Revenue Service (IRS) treats married couples as a single tax unit. This means that, even if you have separate HSAs, you must share a contribution limit. For 2024, the self-only maximum contribution limit is $4,150, and the family contribution limit is $8,300. In 2025, these limits increase to $4,300 and $8,550, respectively. If you are both covered by the same high-deductible health plan, you must have separate accounts and cannot combine the annual contribution limits.

If both spouses are 55 or older, you are entitled to increase your contribution limit with an additional contribution. This is a great way to stretch your yearly limit. You can also use your HSA funds to pay for each other's medical expenses, as well as those of any dependent children.

If both spouses have employers who provide HSA contributions, having two separate HSAs will increase your overall savings. You will receive more money combined than if just one of you had an HSA from your employer. This is a great way to maximise your savings and set yourself up for financial success.

Frequently asked questions