Today TaxMama® hears from Ming in the TaxQuips Forum who wants to be creative. Let me summarize. Both his and his wife’s employers offer health care coverage. However, if they add a spouse, they have to pay. Here’s what he’d like to do: “Is it possible to have one of us enroll in one company’s HMO or PPO plan, and the other one enroll in the company’s HSA plan. (Trying to capture the best of both worlds). We would, of course, have to pay extra now to add the spouse to the other company’s insurance policy, but this would allow us the ability to save money into a HSA (tax deferred) in the other. Also if this is possible, can we contribute up to the family maximum in the HSA? or are we restricted to the individual maximum?”
Dear Ming,
If your company is offering an HSA plan, then sure, use it, if you’re eligible. But as far as I know, the rules for HSA eligibility say you may only participate if you have a high-deductible insurance. So you can’t be on your spouse’s plan AND participate in the HSA.
Please read the rules related to these plans. If you find that I am wrong, please, DO let me know. It’s an interesting idea. But I don’t think it will work. After all, the purpose of the HSAs was to provide an alternative for individuals and families whose companies were threatening to cut out insurance entirely – or could only afford the premiums for high-deductible plans.
On the other hand – why not make a contribution of a similar amount to an IRA? Or a Roth IRA – without paying extra for the spousal insurance.
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