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kitty20015
New Member

Am I supposed to answer yes or no for making a contribution to a HSA based on the last month-rule? I was enrolled in HDHP/HSA for first part of 2016,

Then I changed work and changed the health insurance. Additionally, I haven't put money into the HSA account by myself.


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PaulaM
Employee Tax Expert

Am I supposed to answer yes or no for making a contribution to a HSA based on the last month-rule? I was enrolled in HDHP/HSA for first part of 2016,

The question is referring to 2015. If you contributed in 2015 under last month rule, then you would have to maintain HDHP coverage for all of 2016 to not incur a penalty. Answer 'yes' if this was your case.

If you were enrolled in a HDHP/HSA for all of 2016, then you would answer 'No'. 

If you were enrolled in HDHP/HSA for part of 2016, then the answer is still 'No', but you will need to indicate which months that you were covered by an HDHP on the page, Were you enrolled in a High Deductible Health Plan (HDHP) in 2016? Penalties may be calculated if you contributed more than allowed for the number of months covered.

See attached example.

https://www.irs.gov/pub/irs-pdf/p969.pdf 

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1 Reply
PaulaM
Employee Tax Expert

Am I supposed to answer yes or no for making a contribution to a HSA based on the last month-rule? I was enrolled in HDHP/HSA for first part of 2016,

The question is referring to 2015. If you contributed in 2015 under last month rule, then you would have to maintain HDHP coverage for all of 2016 to not incur a penalty. Answer 'yes' if this was your case.

If you were enrolled in a HDHP/HSA for all of 2016, then you would answer 'No'. 

If you were enrolled in HDHP/HSA for part of 2016, then the answer is still 'No', but you will need to indicate which months that you were covered by an HDHP on the page, Were you enrolled in a High Deductible Health Plan (HDHP) in 2016? Penalties may be calculated if you contributed more than allowed for the number of months covered.

See attached example.

https://www.irs.gov/pub/irs-pdf/p969.pdf 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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