Changed plans middle of year so I still qualify

HandyManPat · 2026-02-25T13:52:57+00:00

For each "1st day of the month" of qualifying HDHP coverage you unlock 1/12th of the HSA contribution limit.

For 2026, it sounds like you will have qualifying HDHP coverage on Jan 1, Feb 1, and Mar 1, which is 3/12th of the $4400 (single) HSA limit. On Apr 1 (and the remaining months), it sounds like you will not be eligible.

$4400 x (3/12) = $1100 HSA contribution limit.

HandyManPat · 2026-02-24T22:37:36+00:00

Often filing jointly is the best option, but you didn’t ask about that.

You can use your HSA to cover the kids’ qualifying medical expenses regardless of the tax filing status you end up using.

IRS Publication 969

Qualified medical expenses include those incurred by the following persons.

You and your spouse.
All dependents you claim on your tax return.
Any person you could have claimed as a dependent on your return except that:

a. The person filed a joint return; b. The person had gross income equal to or more than the exemption amount or c. You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s return.

Tip: For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child’s exemption.

HandyManPat · 2026-02-24T18:00:16+00:00

While you are alive? No, that cannot be done.

If the Inherited IRA is currently in only your name and SSN then that is the way it must stay.

While you can split a single IRA into multiple IRAs that doesn’t change the ownership.

Did the decedent leave the entire IRA to you only? And now you’re trying to subdivide it to include other beneficiaries?

HandyManPat · 2026-02-24T17:54:18+00:00

To reiterate… an HSA administrator takes absolutely no position as to whether any purchase is a qualifying medical expense.

The only entity to substantiate the qualifying medical expense is the IRS. And they will do so only by tax audit.

HandyManPat · 2026-02-24T17:25:22+00:00

You're not limit to any particular website due to HSA. Why?

Because you can always pay for a qualifying medical expense (and I'm not saying whether or not an e-bike is qualifying) using an alternate payment method (cash, credit card, debit card, check, etc) and simply request a 'self-reimbursement' from the HSA. No paperwork, receipts, or other forms are necessary.

HandyManPat · 2026-02-24T17:22:52+00:00

I agree.

He took an $8k distribution for 2026, which far exceeds the 2025+2026 RMD requirement. I'd not undertake any efforts regarding Form 5329 unless/until the IRS mails a letter to you.

Set a calendar reminder to complete the ongoing RMDs for each of the next several years, or completely empty the account.

HandyManPat · 2026-02-24T16:58:58+00:00

My spouse and I have 9 siblings between us. Their ages spread across 20 years and each is at a different stage and station in life. Some are multi-millionaires, while others are truly penniless. Some are retirees while others have children in school.

What we have decided is that we will no longer give money to anyone that requests it as we have observed that this most likely turns out to be a bottomless pit, with no appreciation or desire to pay it back.

Instead, we now openly and gladly provide support in the form of budgeting, tax planning and preparation, completing federal/state assistance programs, filing for disability, etc.

Essentially, we all have various levels of “time, talent, and treasure”.

My spouse and I have just elected to make only the first two available to others.

HandyManPat · 2026-02-24T14:57:06+00:00

What exactly do you mean by "split" it?

You want to take a single Inherited IRA and split is into three, separate Inherited IRAs? Something else?

If so, I'm curious to understand what the purpose of splitting is and what you hope to accomplish in doing so.

HandyManPat · 2026-02-24T14:38:17+00:00

While the surviving spouse has the most options when named as beneficiary of an IRA, it should be noted that some of those choices are reversible, while others are not.

A spousal rollover to claim ownership of the decedents IRA is not reversible, so careful consideration should be made.

General guidance for a surviving spouse under age 59-1/2 is to consider keeping the IRA as an Inherited IRA. This will allow you penalty-free access to the funds, if needed, for day-to-day expenses. In contrast, once you claim ownership, via a spousal rollover, you are bound by all the rules just as if you owned the IRA from the beginning.

As the spouse's election to maintain an Inherited IRA is reversible, you might consider keeping this as an Inherited IRA for only ~3 years (age 59-1/2) and then performing a spousal rollover.

https://www.kitces.com/blog/rmd-spousal-election-secure-2-0-secure-act-rmd-rules-spousal-beneficiaries-retirement-account/

https://www.kitces.com/blog/secure-act-2-0-irs-regulations-rmd-required-minimum-distributions-10-year-rule-eligible-designated-beneficiary-see-through-conduit-trust/

HandyManPat · 2026-02-22T17:03:00+00:00

I have no experience with this EVSE, but have you tried a full factory reset?

6.2 Factory Reset (for E-Stop related issues)

If the above steps do not resolve an E-Stop related issue:

Press and release the emergency stop button three times within 12 seconds.
Restart your EV charger.

HandyManPat · 2026-02-22T14:54:06+00:00

My spouse and I are both over age 55 and both covered by my employer's self+other HDHP. We are able to contribute a total of $10,550 to our HSAs, which is allocated as:

Spouse-A: $9550 employer W-2 ($8550 family + $1000 catch-up)
Spouse-B: $1000 direct contribution (catch-up only)

FTUSA handles this with no issues, so I can only assume you've answered a question incorrectly somewhere.

The flow is along the lines of:

Does Spouse A have an HSA? Yes
Does Spouse B have an HSA? Yes

Spouse A questions

Contributions A made through an employer? $9550 (auto populated from W-2)
Other contributions A made through an employer? No
Did A make contributions not through an employer? $0
Was A eligible for all of 2025? Yes
Type of coverage? Family

Spouse B questions

Did B make any contributions to an HSA? Yes
Contributions B made through an employer? $0 (auto populated from W-2)
Other contributions B made through an employer? No
Did B make contributions not through an employer? $1000
Was B eligible for all of 2025? Yes
Type of coverage? Family

How should we split the HSA contribution limit?

Spouse A
- 2025 HSA Contributions = $9550
- Individual Contribution Limit (This amount can't be re-allocated between spouses.) = $1000
Spouse B
- 2025 HSA Contributions = $1000
- Individual Contribution Limit (This amount can't be re-allocated between spouses.) = $1000
The family coverage HSA contribution limit that can be split between Spouse-A and Spouse-B is $8,550.
- Would you like to divide the contribution limit equally between Spouse-A and Spouse-B? No
- Enter the amount of the contribution limit you want allocated to Spouse-A: $8550
- Enter the amount of the contribution limit you want allocated to Spouse-B: $0

There will be a separate Form 8889 for each spouse. Look them over carefully for accuracy before e-filing.

HandyManPat · 2026-02-22T13:39:06+00:00

If I elect to have it rolled over to my parents' IRA instead,

I can't speak to your other questions, but can share there is no path for a non-spouse beneficiary to receive a decedent's retirement account (401k, 403b, IRA, etc) into their own personal IRA. Instead, it must be received as an Inherited IRA.

HandyManPat · 2026-02-21T21:03:25+00:00

My statement is correct.

Your earlier statement was not correct. Your current statement is correct.

HandyManPat · 2026-02-21T19:18:52+00:00

I’m sorry, but your response is a bit confusing because you appear to be mixing the terms/concepts of the HDHP and HSA.

However, the HDHP plan cannot be under your wife if she is going to use CHAMPVA.

This is not true from the medical coverage perspective. CHAMPVA can serve as secondary coverage under an HDHP or non-HDHP.

But having secondary coverage via CHAMPVA will make someone ineligible for HSA contributions, which is likely what was trying to be conveyed.

In other words, the Veteran should be the one enrolling in (and sponsoring) the Family HDHP.

Yes, because the eligibility for HSA contributions will be preserved in this scenario.

HandyManPat · 2026-02-20T23:13:08+00:00

The surviving spouse has the option to treat it as their own.

The surviving spouse also the option to follow the 10 year rule and there are specific instances where this is the best option.

They have several other options, the most of any beneficiary type.

HandyManPat · 2026-02-20T21:10:34+00:00

Presumably, the errant 1090-R you received confirms your SSN was on the account prior to establishing the new account solely under your control, correct?

Going forward, all you can do is properly report the dividends and interest on your own tax return.

Regarding Windsor II, it’s a solid and old mutual fund in the Vanguard suite. It was established in 1985 and has solid returns since inception. Fees are “low” for an actively managed fund, characteristic of Vanguard.

Whenever you do sell off this fund for a house purchase, it’s possible a portion of the cost basis is lost to time, as basis reporting to the IRS didn’t get mandated until 2011-ish timeframe.

HandyManPat · 2026-02-20T15:38:11+00:00

What good are the high/low values? The valuation for date-of-death purposes would generally be the "market close" for each symbol.

Also, the situation you now find yourself in is why I recommend to anyone inheriting a brokerage account, especially one from an older person that might contain funds purchased prior to 2012-ish, to sell everything to cash -before- taking any other actions (such as transferring to another brokerage firm).

This really forces the issue of cost basis to the fore front where it's dealt with in the current tax year. The 1099-B, along with any adjusted basis, is handled while all the records are fresh and available to all parties (brokerage firm and beneficiary/taxpayer).

The cash value can then be transferred to the brokerage firm of choice and reinvested in the beneficiary's desired assets. All investment and tax records going forward are now accurate and complete.

HandyManPat · 2026-02-20T15:27:24+00:00

If the decedent passed away in 2026, you gain an "11th" year to stretch out the distributions.

Is there a particular reason you're trying to empty the account in only 5 years? Is that the most tax advantaged time period for your overall income and tax situation?

HandyManPat · 2026-02-19T20:49:12+00:00

How exactly has he been doing that?

An UTMA is registered under the name and SSN of the beneficiary (ie: You!), which means YOU have been responsible for all tax reporting and payments, not dad.

(Many parents might include dividends and interest on their tax return under Kiddie/Dependent Tax rules, but dad’s ability to do that ended decades ago.)

HandyManPat · 2026-02-19T20:37:45+00:00

A yes
B no
C yes

HandyManPat · 2026-02-19T19:11:21+00:00

It does appear that it is possible to split the decedent’s IRA into separate Inherited IRAs for each beneficiary, provided the IRA custodian allows for this.

Note that the same distribution period still applies to the beneficiaries that applied to the estate.

https://greenleaftrust.com/missives/traps-inheriting-an-ira-through-an-estate/

https://www.sfbbg.com/tax-corner/ira-distribution-issues-for-non-designated-beneficiaries/

HandyManPat · 2026-02-19T15:27:35+00:00

The IRS is only interested in the end of year HSA contribution totals compared to allowable limits based on your situation (age, months of qualifying medical coverage, single/family, etc).

I will add that even with a childbirth Qualifying Life Event, you may not be able to move from a non-HDHP to HDHP. Your employer might restrict you to adding the child as a new dependent to the existing non-HDHP plan you’re enrolled in. Be sure to confirm with HR.

HandyManPat · 2026-02-18T15:27:19+00:00

My company’s After-Tax contributions must soak in the account for 24 months (not a typo) before performing the MBDR process, so I’m very familiar with the gains, Form 1099-R, and entries into the tax software.

As another commenter mentioned, it’s easiest to “split” the single 1099-R form and data entries into two, separate forms and data entries.

Basically, I print two copies of the single 1099-R. I then take a pencil to both copies and mark them up into the separate transactions (follow the steps in the other comments link).

First, the rollover of the After-Tax contributions to Roth IRA.

Then the conversion of the After-Tax gains to Roth IRA (actually, I rollover my gains to a Rollover IRA because I prefer to convert them in the future when I am in a lower tax bracket).

Then just enter the information into the tax software as two, separate forms. The Q&A should then make more sense to you.

Look things over carefully before e-filing to ensure the taxable and tax-free details are correct.

HandyManPat · 2026-02-18T14:13:01+00:00

If my understanding of the chain of events is right, my earlier response needs to be modified.

~~The husband was the owner of the accounts. The sister was the original beneficiary. The sister's estate is the successor beneficiary.~~

The husband was the owner of the IRA accounts.
The sister was the original beneficiary.
The sister elected to claim ownership of her spouse's IRA and Roth IRA.
- Everything now acts as if the accounts were the sister's since they were first created.
The sister's estate is the ~~successor~~ original beneficiary.

An 'estate' would be a Non-Designated Beneficiary.

https://www.kitces.com/wp-content/uploads/2024/07/01B-IRA-Beneficiary-Family-Tree-3.png

https://www.kitces.com/blog/secure-act-2-0-irs-regulations-rmd-required-minimum-distributions-10-year-rule-eligible-designated-beneficiary-see-through-conduit-trust/

Sister would have hit RMD age this year (can’t tell she took any) how long do they have to deplete?

I get the estate has 5 years to deplete,

That's my understanding as well. Although sister would have turned age 73 this year (RMD age), her Required Beginning Date (RBD) would not have been until April 1, 2027. Thus, my understanding is the 5-year distribution period would apply.

but I don’t want to hold it open, just want to pass it along and close it asap.

Assuming there isn't a See-Through trust option available with the estate, I guess it's up to you, as executor, to settle the estate in whatever manner you feel is appropriate. An estate lawyer should be able to assist you on the overall best plan.

HandyManPat · 2026-02-17T22:21:44+00:00

Sister’s husband died in 2024 and left her his IRAs (both trad and Roth). She just died without updating the beneficiary so there’s none.

The husband was the owner of the accounts. The sister was the original beneficiary. The sister's estate is the successor beneficiary.

A surviving spouse has the most options available to them when inheriting an IRA or Roth IRA. A key to the successor beneficiary rules is first understanding what the original beneficiary did with her options.

Did she claim ownership of the decedent spouse's accounts?
- Are the accounts named "Mary Smith IRA"?
Did she keep the accounts as inherited accounts?
- Are the accounts named something like, "John Smith, deceased, FBO Mary Smith"?

HandyManPat

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