Health Savings Accounts (HSAs) - Triple Tax Free Retirement Savings

Health Savings Accounts (HSAs) - Triple Tax Free Retirement Savings


Yes, you can open an HSA with another provider. Is your company making contributions into your HSA? Are you making contributions via payroll deduction? It would be best to limit your contribution to just your company sponsored HSA and then do a rollover into another HSA of your choosing, if you feel it’s worth the bother.

Your spouse can open an HSA and contribute to it only if her health plan is a HDHP. I’m a stay-at-home spouse who is covered under my husband’s family HDHP. I just opened an HSA of my own at Fidelity only to take advantage of the $1,000 catch-up contributions for 55+.


Hi Gwraigty,
Thanks for the feedback. My contributions are though payroll deductions. My company contributes 1k towards my HSA account. Spouse has own insurance policy which is not HDHP. May be i should move spouse into my insurance plan, then he can have his own HSA account right?

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You’re welcome. It’s hard to answer that without knowing costs of maintaining separate insurance, coverage, etc. But yes, he would be able to have his own HSA if he’s covered under your HDHP family plan. You still are limited in how much you can contribute in aggregate to the HSAs under family limits. An advantage would be that you could do the over 55 $1,000 for both of you, contributing his in his HSA, when it’s applicable. I just found out about this as an option, thanks to another forum I participate in. I’m happy to pass this info along! :grinning:


Please check your plan specifics. My wife’s HDHP plan won’t accept me if I’m eligible for my own employer’s plan. It doesn’t matter whether I’ve joined my employer’s plan, just if I’m eligible.


One sort of loophole, if you have kids, is that as long as you and one of the kids are covered by the HDHP, you can contribute to the FAMILY max. Spouse HDHP coverage is not required for this.


Thanks for the information. This is what we are doing. We get max from my employer (me + kids). Spouse has basic plan with her employer. She is covering her expenses from our HDA.

I got a tax document for 2018 HSA contributions. Do I need to enter this information on tax form?



You need to enter HSA contributions on Form 8889.


Thanks for the update.


On my form 1099-SA, I have $1017.73 mentioned in BOX 1. Turbo tax is adding this amount as a taxable income. Do we need to pay tax on distribution from HSA account. I remember getting $1000 from employer for participating in HSA program.


I believe the 1099-SA just informs you that you took the distribution from the HSA. You should have had a follow-up question (at least HRB did) about whether or not the distribution was used to for qualified medical expenses. If the distribution was for medical expenses, it should have been removed from income. If it wasn’t for qualified expenses, then you would have to include it as taxable income.


Thanks for the update. I have confused with $1000 contributed by Employer to participate in HSA plan. I used only for medical expenses. I need to mention it as a qualified expense.


I have checked the box which says Yes i only used for medical expenses. Turbo tax is still showing my HSA distribution as my income. What i am missing.


My bad. I have put in the numbers in taxact. It shows same tax amount as in Turbo tax. Turbo tax just shows distributions in your income section but it doesn’t add it up to total income.