A health savings account (HSA) can benefit your entire family. But to make the most out of this tax-advantaged savings vehicle and avoid steep penalties, you need to keep some important points in mind. So let’s take a closer look at the HSA rules that apply to married couples.

How spouses can manage HSAs

For starters, there is no such thing as a joint HSA.
But the IRS views married couples as one tax unit. So if either spouse or both is covered by an HSA-eligible high deductible health plan (HDHP) with family coverage, the couple must abide by the family HSA contribution limit. For 2024, the HSA contribution limit for family coverage is $8,300. So one spouse in this scenario can open an HSA in his or her name and contribute up to the family maximum to that account.

If each spouse has self-only coverage and an individual HSA, each can contribute up to the individual maximum of $4,150.

But what if one spouse has an HSA with family coverage and the other has an HSA with self-only coverage? In this case, the married couple has three options.

• Split the HSA family contribution limit across both accounts evenly
• Divide the contribution limit as they both see fit
• Contribute up to the family limit into one spouse’s account

Moreover, each spouse can make an additional $1,000 catch-up contribution to his or her own account when reaching age 55.

It’s important to stay on top of these rules. Making excess HSA contributions could trigger a 6% excise penalty tax in addition to any income tax owed on the excess amount.

Can I use my HSA on my spouse?

Yes, you can use your HSA funds to pay or reimburse the qualified healthcare expenses of your spouse penalty-free. This may be necessary for married couples who opted to contribute the maximum family contribution to one spouse’s individual account.

However, you can’t double dip. This means you can’t use HSA funds from both accounts to cover the same expense.

With that said, it’s crucial that married couples keep receipts and any records tied to HSA distributions of any kind.

Can I have more than one HSA?

You can have more than one HSA account if you’re eligible to open one in the first place. There’s no limit to how many accounts you can have in your name. But you must abide by HSA contribution limits. For 2024, an individual can contribute up to $4,150 and an additional $1,000 if aged 55 or older.

That limit applies to all your HSA accounts combined. So you can’t contribute up to the maximum to each account. You need to spread it across all your accounts.

But is having more than one HSA a good idea? It might be. Maybe you found an HSA provider that has lower fees, higher interest rates, or investment options that better suit your needs. But you still want to keep some of your current HSA’s features.

If so, you can rollover your HSA to another provider and keep contributing to your current one.

As for HSA options, you have plenty to choose from. The Fidelity HSA, for example, offers a robo-advisor or automated investing feature. And if eligible, you can connect your existing account to a Schwab HSA that would allow you to invest your HSA dollars in stocks, mutual funds, exchange-traded funds (ETFs) and other securities.

Why we covered this

An HSA can be an effective tax-advantaged savings vehicle for your whole family. However, there are important rules that apply to married couples. It’s crucial to understand these requirements in order to make the most out of HSAs and steer clear of penalties and other consequences.

If you want to learn more about HSAs, check out our regularly-updated HSA main page for the latest coverage.

 

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