Wow - I'm still confused. No - he did not have an HSA in 2018. I did but did not contribute. You indicate he can't do the QFD once he's on Medicare - that I understand.
The goal was to open an HSA in his name in the amount of $2626 (for the 7 months of 2019 he had HDHP before beginning Medicare) as a prior year contribution for 2019 using partial RMD funds. The ? of 2018 coverage did come up in the interview and I answered yes to HDHP family for all of 2018.
My confusion stems from reading the "testing period" - appears to be from the date the QFD transfer is made - here's a quote from Making Sense of the HSA Test from Healthsavings.com
"When you transfer your IRA or Roth IRA to your HSA" - Second Scenario
For the second and third scenarios, the testing period is the 13-month period starting on the first day of the month when the transfer happened and ending on the last day of the following 12th month (if you made a transfer in June, the testing period would be until the end of the following June).
As I read that - I understand that to mean that if the QFD is done in March 2020 (for prior year contribution) - he would have to remain eligible for the next 12 months - which clearly is not possible since he went on Medicare on August 1, 2019.
Am I misunderstanding the "testing period"? Think I may be better off forgetting the QFD for him completely and just make the prior year contribution from a savings account? Thoughts?
Thanks again for your saintly patience! I worked in law for 30+ years and it was a breeze compared to this! 🙂
