Unit 4 - Session 20 - Retirement Plans & Edu Funding

Question 1

Traditional IRA Contribution Limits

Answer 1

$5,500 per individual or $11,000 per couple of taxable compensation. Income and capital gains are tax deferred until the funds are withdrawn

Question 2

What does the IRS consider as eligible compensation to contribute to an IRA plan?

Answer 2

Wages, salaries, tips, commissions, bonuses, self-employment income, alimony, nontaxable combat pay

Question 3

What does the IRA NOT consider as eligible compensation to contribution to an IRA plan?

Answer 3

Capital gains, interest and dividend income, pension or annuity income, child support, passive income from DPPs

Question 4

Catch-up Contributions

Answer 4

As a result of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) Individuals 50 and older are allowed to make additional contributions above the annual contribution limit to their IRA, $1,000

Question 5

Roth IRA

Answer 5

Tax Payer Relief Act of 1997 created the Roth IRA which are not tax deductible. Regular contributions may always be withdrawn tax free b/c they are made with nondeductible contributions. Earnings may be withdrawn tax free five years following the initial deposit provided that:

1. ) account holder is 59 1/2 or older
2. ) money withdrawn is used for the first-time purchase of a principal residence
3. ) account holder had died or become disabled

Question 6

Contribution Limits for Roth IRAs

Answer 6

For individuals $5,500. A married employee may contribute an additional $5,500 to a nonworking or low-income spouse’s Roth IRA. Contributions may be made past 70 1/2 as long as the taxpayer has earned income. Individuals can contribute to a Roth and Traditional IRA, but the limit is still $5,500 (or $6,500 if 50 or older)

Question 7

Eligibility Requirements of a Roth IRA

Answer 7

Anyone with earned income is eligible to open a Roth IRA provided the person’s AGI falls below specified income levels. As of 2016, a single person with AGI of $117,000 or less may contribute the full amount to the Roth IRA. The ability to contribute to a Roth is gradually phased out if the taxpayer’s AGI is between $117,000 and $133,000. For married taxpayer who file a joint returns the AGI limit is $184,000 with the contribution phase out for couples who income is between $184,000 - $194,000.

Question 8

Roth Conversation

Answer 8

Anyone with a traditional IRA is permitted to convert it to a Roth IRA. Typically, the entire amount converted is added to the investor’s ordinary income. There is no 10% early distribution penalty (for those under the age of 59 1/2) if the funds are transferred from trustee to trustee or are rolled over within 60 days if distributed to the owner.

Question 9

Simplified Employee Pensions (SEP) IRAs

Answer 9

offers self-employed person and small businesses easy-to-administer pensions plans. Allows the employer to contribute directly to a IRA for each employee.

Question 10

Eligibility of a SEP IRA

Answer 10

An employee must be 21 and have performed services for the employer during at least 3 of the last last 5 years and have received at least $600 in compensation from the employer in the current year.

Question 11

Funding a SEP IRA

Answer 11

Allows the employer to contribute up to 25% of an employee’s salary to the employee’s SEP IRA each year, up to the maximum of $53,000 per employee per year. The employer must contribute the same % for each employee. Employees are fully vested immediately.

Question 12

What date are RMDs required to be taken?

Answer 12

April 1st, following the year the investor turns 70 1/2. If you turn 70 1/2 on 1/1/17, RMDs do not have to be taken until 4/15/18.

Question 13

What are the RMDs for Roth IRAS?

Answer 13

None

Question 14

Nondeductible Capital Withdrawals

Answer 14

Investors are not taxed on withdraws from an IRA on the monies that were put it with after tax dollars, but are taxed at ordinary income rates on capital gains and income.

If a client has invested $25,000 in after tax dollars, and it is worth $75,000, they are taxed on $50,000.

Question 15

If you receive a tax filing extension can you make a IRA contribution during that extension period?

Answer 15

No. Contributions must be made by 4/15

Question 16

Excess contributions

Answer 16

excess IRA contributions are subject to 6% penalty

Question 17

Rollovers

Answer 17

1. ) Can occur once every 12 months
2. ) Must occur within 60 days of the fund’s withdrawal if the investors takes possession of the funds
3. ) If the investor takes possession, the qualified plan must withhold 20% of the funds, however the investor must still rollover the total amount (must use personal funds to make up 20%) and the 20% holdback is recovered through the next income tax return
4. ) 100% of the funds must be rolled over or to be subject to tax and penalties

Question 18

Nonspouse Beneficiary Rollover

Answer 18

When a nonspouse beneficiary inherits a plan, according to Pension Protection Act of 2006, the beneficiary can rollover a qualified plan into a traditional IRA. This must be completed by a trustee-to-trustee distribution, must set up an inherited IRA, and must take the minimum beneficiary distributions, if applicable.

Question 19

Rollover from Retirement Plan to Roth

Answer 19

Pension Protection Act of 2006 allows for this rollover, providing the investor meets the requirements for converting a traditional IRA to a Roth. The investor must report the entire amount of the rollover as ordinary income in the year of the conversion

Question 20

IRA Transfers

Answer 20

A transfer from one IRA custodian to another where the investor never takes possession is unlimited. However, a rollover,

Question 21

Earning Limits for IRA & SEP IRAs

Answer 21

Participants may deduct contributions to their IRA from their taxable income. The limits are lowered for those who are eligible for qualified plans. There are also AGI limits for those that phase out as AGI increases.
2.) Individuals who are ineligible to participate in a qualified plan may deduct IRA contributions regardless of income

Question 22

Spousal Beneficiary - Inherited IRA

Answer 22

When inherited two options occur with the IRA

1. ) Spouse can roll it over into the spouse’s own IRA
2. ) Continue to own the IRA as a beneficary

When doing a rollover withdrawal ages and RMDs still apply. When choosing to be a beneficiary, an withdrawals before 59 1/2 are not subject to a 10% penalty but RMDs start at the time the deceased would turn 70 1/2. If its a Roth IRA, and has not been open for 5 years, then it is subject to the 10% penalty on any withdrawals.

Question 23

Nonspousal Beneficiary - Inheritied IRA

Answer 23

1. ) 100% of the cash can be taken at the time of inheritance and be subject to taxable incomes in that year
2. ) take the all the cash after 5 years of the the decased day of death, on 12/31 of that year, subject to taxable income
3. ) Take out RMDs over the beneficiaries own life expectancy. Each withdrawal is subject to taxable income. A inherited RIA account must be set up in the deceased owners names with a “for the benefit” of the beneficiary. and the first RMD must be taken by 12/31 of following the year of the deceased’s death
4. ) Take RMDs on the life expectancy of the oldest beneficiary

Question 24

How to disclaim an IRA

Answer 24

Must do it within 9 months of the account owner’s death, must be in writing, and can’t take the money and the assets pass to the contingent beneficary.

Question 25

KEOGH Plan

Answer 25

ERISA qualified plans intended for self-employed individuals and owner-employee individuals of unincorporated businesses (i,e. independent contractors, consultants, freelancers, anyone who files self-employment SS tax.)

Question 26

403(b) plans

Answer 26

Qualified tax-deferred retirement plans for employees of public school systems, and tax-exempt nonprofit organizations such as church.

Question 27

Tax Advantages of 403(b)

Answer 27

1. ) Contributions are excluded from participant’s gross income
2. ) Participant’s earnings accumulate tax free until distribution

Question 28

Eligibility Requirements for offer a 403(b) plan

Answer 28

1. ) public educational institution
2. ) tax-exempt 501(c)3 organization
3. ) church organization

Question 29

403(b) plan requirements

Answer 29

1. ) Plan must be in writing and must be made through a plan instrument, a trust, or both
2. ) The employer must remit plan contributions to any annuity contract, a mutual fund, or another approved investment

Question 30

Salary Reduction Limits 403(b)

Answer 30

$18,000 with a $6,000 catch-up provision

Question 31

403(b) employer contribution limits

Answer 31

$53,000 or 100% of the participant’s compensation

Question 32

Employee Retirement Income Security Act of 1974 (ERISA)

Answer 32

Federal legislation that regulates the establishment and management of corporate pension and retirement plans, also known as private sector plans.
Aka Pension Reform Act

Guidelines

1. ) Eligibility
2. ) Funding
3. ) Vesting
4. ) Communication
5. ) Nondiscrimination

Question 33

Uniform Prudent Investor Act (UPIA)

Answer 33

Passed in 1994 to attempt to update trust investment laws and recognition of market changes over time

Question 34

How does the UPIA affect the IA’s role

Answer 34

1. ) Much manage like a prudent investor would and consider the purpose, terms, distribution requirements, and other circumstance of investments held in trust
2. ) Investments must not be invested in isolation but in context of the entire portfolio and as part of an overall investment strategy with risk return objectives that suited for the client
3. ) Considerations for when investing client assets: general economic conditions; effects of inflation or deflation; expected tax consequences of investment decision strategies, the role each asset plays within the total portfolio (including financial assets, tangible and intangible property, & real property); the expected total return from income and appreciation of capital; other resources of the beneficiaries; needs of liquidity, regularity of income, and preservation or appreciation of capital; and asset’s special relationship value or special purpose
4. ) Called upon for the use of expertise in a certain subject matter or aka a prudent expert
5. ) Delegating investment advisory task means the IA must exercise reasonable care, skill, and caution when selection an adviser, establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust, periodically reviewing the adviser’s actions to monitor performance and compliance

Question 35

Section 404 of ERISA

Answer 35

Regulations that apply directly to retirement plan fiduciaries

Question 36

Fiduciary Standard according to UPIA

Answer 36

Must act:
1.) solely in the interest of plan participants and beneficiaries
2.) for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable plan expenses
3.) with the care, skill, prudence and diligence under the circumstances then prevailing that prudent professional would (known as the prudent expert rule)
4.) to diversify investments to minimize the risk of large losses, unless doing so is clearly not prudent under the circumstances
5.)in accordance with the governance planning documents unless they are no consistent with ERISA
6.) diversify plan assets
7.) make investment decisions under the prudent expert standard
8.) monitor investment performance
9.) control investment expenses
10.) not engage in prohibited transaction
Note: the amount of commission is not a consideration when selecting plan assets and what securities are appropriate

Question 37

Section 407 of ERISA

Answer 37

A plan may not acquire any security or real property of the employer, if immediately after such acquisition the aggregate fair market value of the employer securities and employer real held by the plan exceeds 10% of the fair market value of the assets of the plan

Question 38

Section 404(c) of ERISA - Safe Harbor

Answer 38

Under this section a fiduciary is no liable for losses to the plan resulting from the participant’s selection of investment in his own account, provided the participant exercised control over the investment and the plan met the detailed requirements of the DoL regulation

Question 39

Three basic conditions of 404(c) regulations

Answer 39

1. ) Investment Selection
2. ) Investment Control
3. ) Communicating required information

Question 40

Investment selection 404(c)

Answer 40

A plan participant must be able to:

1. ) materially affect portfolio return and risk level;
2. ) choose between at least three investment alternatives
3. ) diversify his investment to minimize the risk of a large loss

Question 41

Investment Control 404(c)

Answer 41

Control is defined as:

1. ) allowing employees the opportunity to exercise independent control over the assets in their account by letting them make their own choices among the investment options companies have selected
2. ) informing employees that they can change their investment allocations at least quarterly (many allow daily)
3. ) the plan fiduciary is not relieved of the responsibility to monitor the performance of the investment alternatives being offered and replace them when necessary

Question 42

Communication Required 404(c)

Answer 42

Means:

1. ) making certain info available upon requests, such as prospectuses and financial statements or reports relating to the investment options (port. compensation and annual reporting)
2. ) a statement that the plan is intended to constitute an ERISA section 404(c) plan and that plan fiduciaries may be relieved of liability for investment losses
3. ) description of the risk and return characteristics of each of the investment alternative available
4. ) an explanation of how the give investment instructions
5. ) allowing real-time access to employee accounts either by phone or internet

Question 43

Summary of Plan Description (SPD)

Answer 43

When becoming a participant of the plan an entitled set of documents provided, free of charge

Question 44

Defined Contribution Plans

Answer 44

Money-purchase pension plans as well as profit sharing plans and 401(k) plans - max employer contribution is $53,000. Participants usually contribute until a future event (usually retirement) when the funds may be withdrawn. The plan participant assumes the investment risk. The deductions for contributions cannot be more than 25% of the total payroll of the year.

Question 45

Defined Benefit Plan

Answer 45

Designed to provide specific retirement benefits for participants, such as fixed monthly income. the promised benefit is payed under the contract terms, regardless of performance. The plan sponsor assumes the investment risk.

Question 46

Profit-Sharing Plans

Answer 46

Established by an employer allows employees to participate in the business’s profits. Can be paid directly to the employee or deferred into an account for future payment. Have flexibility to corporations b/c they skip contributions on year of low profitability.

Question 47

401(k) plan loan maximum

Answer 47

$50,000

Question 48

Roth 401(k) income limitations

Answer 48

None

Question 49

Employee Match Roth 401(k)

Answer 49

Must be done to a regular 401(k) plan account, so the employer would have to set up two accounts; one for the employer contribution and one for the Roth contribution the employee and contribute to both but can’t transfer money between the two. Roth 401(k) requires RMD at 70 1/2

Question 50

Self-Employed 401(k) Plans

Answer 50

Created by EGTRRA of 2001 for the purpose to allow sole proprietors to contribute to a 401(k) plan. Acts similar to a traditional 401(k) plan, RMDs at 70 1/2, usually offers the highest possible level of any define contribution plan

Question 51

Top Heaving 401(k) plan

Answer 51

All qualified plans must be nondiscriminatory, the IRS has defined this plan in which a disproportionate amount of the benefit goes to key employees. Must be tested annually if it is step up in the following manner:

1. ) the base formula is 100% of elective deferrals up to 3% of compensation and then 50% of elective deferrals on the next 2% of compensation. This means the maximum match is 4% (100% x 3% + 50% x 2% = 3% +1%)
2. ) the employer may elect the nonelective formula (minimum of 3%) of all eligible participant’s compensation. Under this formula, all eligible employees would receive this nonelective contribution whether making salary reduction contribution or not

Question 52

Net Unrealized Appreciation (NUA)

Answer 52

The net increase in the securities value while they were in the plan’s trust. If taken as a lump-sum distribution, the participant has the option of deferring tax on all of the NUA. A lump sum distribution is define as a the disbursement of the entire vested account balance within one taxable year triggering an event. A triggering even is limited to separation of service, 59 1/2, death.

When using a NUA approach, only the original cost basis (as supplied by the employer) is subject to tax. Any unrealized appreciation will be taxed as long-term capital gain, whenever sold. As long as it is held more than 12 months, any further appreciation is taxed as long-term capital gain

Question 53

Section 457 Plan

Answer 53

A deferred compensation plan that may be used by employees of state, political subdivision of a state and any agency or instrumentality of a state, and certain exempt organizations (usually hospitals, charitable organizations, unions, NOT churches, etc.)

1. ) Exempt from ERISA
2. ) Generally not required to follow nondiscrimination rules of other retirement plans
3. ) Plans or tax-exempt organizations are limited to covering only highly compensated employees, while any employee of a governmental entity may participate
4. ) Distributions may not be rolled over into an IRA, but there is a 10% penalty for early withdrawal
5. ) It is possible to maintain both a 457 and 403(b) and make maximum contributions both ($36,00 in ‘16) As a result, those 50 or older in each plan could actually contribute as much as $48,000.
6. ) Unlike 401(k) plans, loans from a 457(b) plans are available in governmental plans only if the entity decided to include the feature in the plan

Question 54

Simple Plans

Answer 54

“Savings Incentive Match Plans for Employees (SIMPLE) are retirement plans for business with 100 or fewer employees who earned $5,000 or more during the preceding calendar year, and the business can not have another retirement plan in place. Employee’s contribution, up to $12,500 with $3,000 catch-up provision is pretax and may be match by the employer using either of the following options:

1. ) 2% nonelective employer contriubtion wehre the employees eligible to participate receive an employer contribution equal to 2% of their compensation (limited to $265,000/yr and subject to cost-of-living adjustments for later yrs) regardless of whether they make their own contributions
2. ) Dollar-for-dollar match up to 3% of compensation, where only the participating employees who have elected make contribution will receive an employer contribution

Question 55

Age at when distributions are required from IRAs

Answer 55

70 1/2

Question 56

What are the exceptions to the 10% tax before the age of 59 1/2? (Both IRA and Qualified Plans)

Answer 56

1. ) Distribution is made to a beneficiary on or after the death of the employee/individual
2. ) Distribution is made b/c employee/indiv. acquires a qualifying disability
3. ) A series of substantially equal periodic payments under IRS rule 72t, beginning after separation from service with employer maintaining the plan before the payments begin
   - after a person begins taking distributions from an IRA under Rule 72t contributions, asset transfers, or rollovers are not permitted while receiving payments
4. ) made at least annually for the life or life expectancy of the employee/indiv or the joint lives or life expediencies of the employee/indiv and his designated beneficiary
5. ) Just IRAs and SEPs: High Ed expense, First-time home buy, health insurance premium while unemployed

Question 57

What is the penalty for not taking RMDs?

Answer 57

50% on the shortfall in addition to ordinary income taxation (no RMDs on qualified plans when the individual is still employed)

Question 58

What is the withholding amount in eligible rollover distribution from a qualified plan?

Answer 58

20% when paid to an employee

Question 59

What is the limit on IRA rollovers?

Answer 59

1 per 365 days (not CY); trustee-to-trustee is unlimited; conversion from traditional to Roth IRA are not limited

Question 60

Non qualified Plan

Answer 60

Does not allow the employer a current tax deduction for contributions. Instead, the employer receives the tax deduction when the money is actually paid out to the employee. This plan does not need to comply with non-discrimination rule that apply to qualified plans and the employer can make non-qualified benefits available to key employees and exclude others. Sponsors are non-qualified plans are fiduciaries.

Question 61

Tax on nonqualified plans

Answer 61

corporations cannot deduct non-qualified plan contributions made on behalf of participants until paid to the participant. Contributions may not be be taxable to the employee until the benefit is received. Contributions that have already been taxed make up the investor’s cost base. When the investor withdraws money from the non-qualified plan, the cost base is not taxed, however, earnings are taxed when withdrawn

Question 62

Non-qualified Deferred Compensation (NQDC)

Answer 62

A contractual agreement between a firm and an employee in which the employee agree to defer receipt of current compensation in favor of a payout at retirement. If the business fails, the employee is generally a creditor of the business in the bankruptcy process. Company directors are not considered employees for the purpose of eligibility for a NQDC, therefore may not participate in the plan.

Question 63

Coverdell Education Savings Account (ESA)

Answer 63

Allow after tax contributions for student beneficiaries. Must be made in cash and before the student turns 18 (unless they are a special needs beneficiary).

1. ) After tax contributions that accumulate on a tax-deferred basis. If not used by the beneficiary’s 30th birthday (except special needs), it must be distributed and the earnings are subject to ordinary income tax and a 10% penalty.
2. ) The maximum contribution is $2,000 annually per beneficiary.
3. ) The account can be used for postsecondary education, elementary, secondary education expenses and for public, private, and religious schools.
4. ) Contributions can be made up to April 15. Contributions can be made by parents or other adults
5. ) Distributions are tax free if taken before the beneficiary’s 30th birthday; the funds can be rolled over into a different coverdell ESA for another family member (which includes cousins, aunts, in-laws, etc.)

Question 64

Section 529 Plans

Answer 64

Known as qualified tuition program (QTP) are state-operated investment plans that give families a way to save money for college with substantial tax benefits.

Question 65

Prepaid Tuition Plans

Answer 65

Allow college savers to prepay for tuition at participating colleges and universities, and in some cases, room and board. Usually sponsored by state governments and have residency restrictions. Be able to pay in today’s rates, the child will be able to attend in the future, regardless of how much higher the tuition is.

Question 66

College Savings Plan

Answer 66

Establish an account for a student beneficiary for the purpose of paying the beneficiary’s qualified college expenses. Offers a variety of investment plans, popular is age-based portfolio that automatically shifts toward more conservative investments as the beneficiary gets closer to college

Question 67

Tax Treatment of 529 Plans

Answer 67

Contributions are made with after-tax dollars, earnings in 529 plans are not subject to federal tax and, in most cases, state tax, so long as withdrawals are for eligible college expenses, such as tuition and room and board. Money representing earnings that is withdrawn from a 529 plan for ineligible expenses will be subject to income tax and an additional 10% federal tax penalty. Many states offer deductions or credits against state income tax for investing in a 529 plan. Eligibility for these benefits is generally limited to participants in a 529 plan sponsored by your state of residence. Federal tax law allows the tax-free rollover to another 529 plan once every 12 months, unless there is a change in beneficiary.

Question 68

Impact on Financial Eligibility

Answer 68

Investing in a 529 plan will generally impact a student’s eligibility to participate in need-based financial aid. The plan is treated as parental assets in calculation of the expected family contribution toward college costs.

Question 69

Contributions to a 529 Plan

Answer 69

Any adult can open a 529 plan for future college student. The donor does not have to be related to the student. Contributions are made with after-tax dollars, but qualified withdrawals are exempt from federal taxation. Tax is the responsbility of the student, not the donor at withdrawal (if required). The maximum contribution by an individual is $70,000 annually ($140,000) if married in a single year w/o gift tax consequences. These funds are considered “municipal fund securities” and required the delivery of an official statement.

Question 70

Custodial Account

Answer 70

Custodian for the beneficial owner enters all trades. UGMA and UTMA accounts require an adult or a trustee to act as custodian for a minor (the beneficial owner). Any kind of security or cash may be gifted to the account without limitation.

Question 71

Uniform Law Commissioners

Answer 71

Adopted the Uniform Gift to Minors Act (UGMA) in 1956 and the Uniform Transfer to Minors Act (UTMA) in 1986. UTMA expands the type of property you can transfer to a minor and provides that you can make other types of transfers besides gifts.

Question 72

UGMA and UTMA Account Limitations

Answer 72

1. ) May be opened and managed as cash accounts only
2. ) Custodian may never purchase securities on margin or pledge them as collateral for a loan
3. ) Must reinvest cash proceeds, dividends, and interest within a reasonable period of time. Cash proceeds may be held in an interest-bearing custodial account for a reasonable period
4. ) investment decisions must consider a minor’s age and the custodial relationship (commodity and naked options and high-risk investments are usually inappropriate)
5. ) options may not be bough in a custodial account b/c no evidence of ownership is issued to an options buyer
6. ) Covered call writing is normally allowed
7. ) Stock subscription rights or warrants must be either exercised or sold

Question 73

Gifts to UGMA/UTMA Accounts

Answer 73

Coveys as an indefeasible title - donor may not take back the gift, nor may the minor return the gift until the minor has reached the age of majority

Question 74

UGMA/UTMA Rules

Answer 74

1. ) All gifts are irrevocable. Gifts may be in the form of cash or fully paid securities
2. ) Ac account may have only one custodian and one minor or beneficial owner
3. ) A donor of securities can act as custodian or appoint someone to do so
4. ) Unless they are acting as custodians, parents have no legal control over an UGMA/UTMA account or the securities in it
5. ) A minor can be the beneficiary of more than one account, and a person may serve as custodian for more than one UGMA/UTMA, provided each account benefits only one minor
6. ) The minor has the right to sue the custodian for improper actions

Question 75

Registration of UGMA/UTMA Securities

Answer 75

Accounts are generally registered in the custodian’s name for the benefit of the minor and cannot be solely in the minor’s name. Securities may be held by custodians in street name. The minor must initiate the transfer when they turn 18 of the registration names. In death, the securities pass to the minor’s estate, not the parents or the custodian

Question 76

Difference between UGMA and UTMA

Answer 76

1. ) UGMA cannot hold real estate (real property) certain partnership interests, and other types of intangible property
2. ) UTMA accounts offer greater investment choice
3. ) In many states, UTMA accounts are not required to be transferred upon the age of majority of the beneficial owner

Question 77

Taxation of UGMA/UTMA

Answer 77

The minor’s SS# is on the accounts and the minor must file an annual income tax return and pay taxes on any income exceeding $2,100 produced at the parent’s top marginal tax rate until the minor reaches 19, unless the individual is a full-time student, in which case, under 24

Question 78

Health Savings Account (HSA)

Answer 78

Tax-exempt or custodial account individuals can set up with a qualified HSA trustee to pay or reimburse certain medical expenses they incur.

Question 79

Eligibility for HSA

Answer 79

1. ) Must be covered under a high deductible health plan on the first day of the month.
2. ) Have no other health coverage except what is permitted under the rules
3. ) not enrolled in Medicare
4. ) cannot be claimed as a dependent on someone else’s tax return
5. ) Each spouse who is an eligible individual who wants an HSA must open a separate HSA, cannot have a joint HSA.

Question 80

Contributions to HSA

Answer 80

Employees and Employers may contribute to an HSA in the same year. For HSA established by a self-employed (or unemployed) individual, the individual can contribute. Family members or any other person may also make a contribution on behalf of an eligible individual. Contributions must be made in cash.