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posted Jun 1, 2019 2:15:04 PM

Can I contribute a full year's HSA Contribution in 2018 if my High Deductible Health Policy was only in force for the first 5 months of 2018 ?

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1 Best answer
Level 13
Jun 1, 2019 2:15:05 PM

No. You have to pro-rate the annual HSA contribution limit by 5/12ths, e.g., $1,438 ($3,450 times 5 divided by 12 for a Self-only plan), or $2,875 ($6,900 times 5 divided by 12).

It would be different had you been covered on December 1, 2018, because you could have invoked the last-month rule which allows you to use the full annual HSA contribution limit.

As it is, when you enter the HDHP coverage for only 5 months, TurboTax will calculate the appropriate limit.

1 Replies
Level 13
Jun 1, 2019 2:15:05 PM

No. You have to pro-rate the annual HSA contribution limit by 5/12ths, e.g., $1,438 ($3,450 times 5 divided by 12 for a Self-only plan), or $2,875 ($6,900 times 5 divided by 12).

It would be different had you been covered on December 1, 2018, because you could have invoked the last-month rule which allows you to use the full annual HSA contribution limit.

As it is, when you enter the HDHP coverage for only 5 months, TurboTax will calculate the appropriate limit.