The "Catch Up Act" allows both spouses to make catch-up contributions to the same health savings account, effective for taxable years beginning after December 31, 2025.
W. Steube
Representative
FL-17
The Catch Up Act amends the Internal Revenue Code to allow both spouses to make catch-up contributions to the same health savings account (HSA). For married couples with family coverage under a high deductible health plan, the contribution limit is applied without considering other high deductible health plan coverage of either spouse and is divided equally between the spouses, including catch-up contributions if both are age 55 or older. This change is effective for taxable years beginning after December 31, 2025.
Catch Up Act Proposes Allowing Both Spouses Over 55 to Make HSA Catch-Up Contributions to One Account Starting 2026
This bill, titled the "Catch Up Act," aims to tweak the rules for Health Savings Accounts (HSAs) specifically for married couples. Starting with tax years after December 31, 2025, it proposes allowing both spouses, if they are 55 or older, to make their individual "catch-up" contributions into the same family HSA. Currently, even if both spouses are eligible, only one catch-up contribution is typically allowed per account.
Doubling Up on HSA Catch-Up
Think of it like this: HSAs let you save pre-tax money for healthcare costs, which is great. If you're 55 or older, the IRS lets you put in an extra amount each year – that's the "catch-up" contribution, designed to help boost savings as you get closer to retirement. Right now, if you and your spouse share a family HSA and are both over 55, you generally can't both add your full individual catch-up amounts to that single account. This bill changes that specific rule.
How the Numbers Would Work
The legislation amends Section 223(b)(5) of the Internal Revenue Code. For married couples with family coverage under a high-deductible health plan, the bill clarifies how the maximum contribution limit is calculated and divided. The key change is this: if both spouses hit the magic age of 55 before the tax year ends, the standard contribution limit (which they can agree to split however they like) gets boosted by both of their individual catch-up amounts. If only one spouse is 55+, only their catch-up amount gets added. This effectively allows couples where both partners are 55 or older to potentially double the catch-up savings going into their shared HSA.
Boosting Savings for Older Couples
The practical impact? It simplifies things for married couples over 55 who share an HSA and want to maximize their healthcare savings. Instead of potentially needing separate accounts or complex workarounds just to get both catch-up contributions in, this allows them to pool those extra funds into their primary family HSA. This could mean significantly more tax-advantaged money set aside for healthcare expenses later in life, directly addressing a common savings goal for those approaching or in retirement.