@bugmenot wrote:
Thanks. I agree professional advice is best in these situations. And I've discussed with my financial advisor who wasn't sure about it. However your advice corroborates everything I've read online and my personal interpretation of the IRS rules: https://www.irs.gov/publications/p969#en_US_2021_publink[phone number removed]
Mainly I guess I was just looking for some confirmation of what I'm interpreting. I appreciate your point about using the 7300 limit under the last month rule but then if I'm dropped from a family plan in 2023 then I'd have to withdraw some I take it or pay a penalty. Might just stick with the single limit for 2022 then to be safe.
Well, your 2022 limit would be 11 months single plus one month family, which is $3,953 instead of the 12 month single limit which is $3650. That won't change for your 2022 tax return even if you drop back to single coverage or lose your HDHP in 2023.
But, it you think there is a chance your insurance will change and you won't be enrolled in an eligible family HDHP for all of 2023, it would probably be best to not rely on the 12 month rule now.
Cheers.
