How may spouses agree to divide the annual HSA contribution limit between themselves?
A-32. Section 223(b)(5) provides special rules for married individuals and states that HSA contributions (without regard to the catch-up contribution) “shall be divided equally between them unless they agree on a different division.” Thus, spouses can divide the annual HSA contribution in any way they want, including allocating nothing to one spouse. See also Notice 2004-2, Q&A 15.Example . In 2004, Susan, an eligible individual, has self-only HDHP coverage with a $1,200 deductible from January 1 through March 31. In March, Susan and Mitch marry. Neither Susan nor Mitch qualifies for the catch-up contribution. From April 1 through December 31, 2004, Susan and Mitch have HDHP family coverage with a $2,400 deductible. Mitch is an eligible individual from April 1 through December 31, 2004. Susan and Mitch’s contribution limit for the nine months of family coverage is $1,800 (nine months of the deductible for family coverage. 9/12 x $2,400). Susan and Mitch divide the $1,800 between them.
A-32. Section 223(b)(5) provides special rules for married individuals and states that HSA contributions (without regard to the catch-up contribution) “shall be divided equally between them unless they agree on a different division.” Thus, spouses can divide the annual HSA contribution in any way they want, including allocating nothing to one spouse. See also Notice 2004-2, Q&A 15. Example . In 2004, Susan, an eligible individual, has self-only HDHP coverage with a $1,200 deductible from January 1 through March 31. In March, Susan and Mitch marry. Neither Susan nor Mitch qualifies for the catch-up contribution. From April 1 through December 31, 2004, Susan and Mitch have HDHP family coverage with a $2,400 deductible. Mitch is an eligible individual from April 1 through December 31, 2004. Susan and Mitch’s contribution limit for the nine months of family coverage is $1,800 (nine months of the deductible for family coverage. 9/12 x $2,400). Susan and Mitch divide the $1,800 between them.
