Catch-Up Contributions to HSA for 2024

[antohoho]

I have an HSA with HealthEquity that was provided by my employer when I was employed with them. I left that job in 2019. But still keep my HSA account active till now.  In 2022, I started a new job and opened a MyChoice HSA account through my new employer. I quit my job in October 2024 and no longer have health coverage through that employer.

My question is: Can I make a catch-up contribution to my HealthEquity HSA for the year 2024 now that I've had a MyChoice HSA account for part of the year? I'm not fond of MyChoice, but I'm unsure if I can still contribute to my older HealthEquity HSA account, even though it's still active. If I can, what would be the maximum contribution I could make for 2024, considering I no longer had health coverage in November and December?

[MindyB]

Per the IRS, to be an eligible individual and qualify for an HSA contribution, you must meet the following requirements.

• You are covered under a high deductible health plan (HDHP), described later, on the first day of the month. 
• You have no other health coverage except what is permitted under Other health coverage, later.
• You aren’t enrolled in Medicare.
• You can’t be claimed as a dependent on someone else’s 2024 tax return.

@antohoho [Edited  1/27/25 06:43 PM]

[antohoho]

I had an HDHP from January 1st, 2024, until October 31st, 2024. Since I was enrolled in an HDHP for part of the year, I was wondering if I can make a prorated catch-up contribution for the months I had coverage, or if there are other rules that apply.

This is what IRS says:

"When To Contribute

You can make contributions to your HSA for 2024 through April 15, 2025. If you fail to be an eligible individual during 2024, you can still make contributions through April 15, 2025, for the months you were an eligible individual."

Am I missing something ? 

[MindyB]

@antohoho If you did not already contribute 10/12 of the maximum, then 10/12 of the maximum would be allowed under the proration rule.

For a family plan: 10/12 of $8,300 = $6,917

For an individual plan: 10/12 of $4,150 = $3,458

[antohoho]

hank you for confirming! Just to summarize:

1. I don’t need to currently be enrolled in an HDHP to make a prorated catch-up contribution for the months I was enrolled last year (January–October).
2. I can make the contribution to either my HealthEquity HSA (from 2019) or my MyChoice HSA (from last year), correct?

[BillM223 · Accepted solution]

As Mindy said, you may contribute (until April 15th) an HSA contribution for 2024 that will bring your total up to the 10/12ths of your annual HSA contribution limit (depends on whether you had Family or Self-only coverage, and if the HSA owner was 55+). You can make this contribution for those months in 2024 when you had HDHP coverage. See IRS Pub 969.

We don't call these "catch-up" contributions - that might confuse people.

Yes, you can make this contribution to either HSA, or split it to go to both.

At some point, you might want to rollover the amount in the MyChoice HSA to the HealthEquity HSA because you seem to prefer the latter. Note: this rollover does not affect your contribution limit for the year.