AnnetteB
Intuit Alumni

Deductions & credits

The last month rule allows an eligible person to contribute up to the maximum contribution limit to their Health Savings Account (HSA) if they are covered by a High Deductible Health Plan (HDHP) on December 1st of a tax year.  The “catch” for being allowed to contribute so much to the HSA is that they must remain enrolled in the HDHP through the entire following year or there will be tax consequences. 

In your case, since you remained enrolled in a HDHP for the entire year of 2016 (even though it was with two different plans), the last month rule would not apply.  For it to apply, you would have had to contribute more than your ordinary monthly amount to the HSA in December of 2015 and you would have had to break your coverage in a HDHP at some point during 2016. 


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