Submitted by aga1793 t3_z904wo in personalfinance
sciguyCO t1_iyea3oh wrote
>Am I legally allowed to contribute up to $7300 even though we are not married, but are living together as domestic partners?
Yes (though see my last paragraph below). The only criteria for allowing $7300 of contributions is that the owner of the HSA is covered by a "family" plan. What other individuals are being covered doesn't matter for purposes of determining your HSA contribution limit. It can be you + domestic partner, you + spouse, you as a single parent + child, whatever.
>She is self employed. Can we both contribute up to $7300 in our separate HSA accounts?
Oddly enough, yes, as long as each individual's HSA contribution stays under the $7300 limit. This is a quirky loophole around the HSA contribution limit rules, which also crops up in situations of parents with their adult (non-dependent) children covered by the same family insurance plan.
On your tax return, you would indicate whether you have individual or family coverage. If it's family, then your HSA contributions can go up to $7300. On your partner's separately filed tax return, they'd also indicate family coverage and also be allowed up to $7300 in contributions into their HSA.
This loophole closes for couples who file as married (either jointly or separately). That situation explicitly limits the couple to $7300 in total going into HSAs owned by either spouse, though AFAIK it doesn't matter which individual's HSA gets what share of that total.
As one last bit, technically your contribution limit gets pro-rated based on each month's HDHP coverage status. So if you switched coverage in the middle of 2022, you'd have some months that use the "individual HDHP" amount (1/12th of the $3650 individual max per month of coverage) and some as "family". You partner would have (I assume) some months of no HDHP coverage (so $0 added to the limit) + some months of "family" coverage. However, there's a "last month rule" exception to that, which you may want to check into to see if that can safely apply. If used, you each would use your coverage status as of December 1 2022 to determine your allowed 2022 max.
aga1793 OP t1_iyeak1i wrote
Super helpful to know this when we decide to get married. Thank you very much!
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