HSA Contribution 2020

[ArcherDog12345]

I changed jobs in April 2020 and began (for the first time) an HSA. I understand the "last month" rule will allow me to contribute the full calendar year for my family this year ($7,100). However, with the tax extension to July "2019" contribution are popping up as an option for me to contribute to via my work. 

May I contribute BOTH to the full 2020 contribution, as well as the 2019 contribution - considering the timing of the switch? Or, would the "last month" rule indicate I would only be eligible for the $7,100 2020 contribution?

Thanks so much!

[Critter]

Since the HSA was just started in 2020 you cannot make contributions for the prior tax year. 

[ArcherDog12345]

That is what I suspected, but didn't want to miss out on an opportunity. Thanks so much!

[BillM223]

May I assume that you started HDHP (High Deductible Health Plan) coverage with your new job in April 2020? Then, as Critter said, you are not eligible to contribute to the HSA for 2019.

You would have been eligible to make a contribution for 2019 had you been covered by an HDHP in 2019, even if you had not yet opened an HSA. You would have retroactively opened the HSA for 2019 and made the contribution.

Please note that since you created the HSA in April 2020 that you can reimburse yourself for any qualified medical expenses that you paid with after-tax dollars, but only those expenses incurred after the date that the HSA was created (usually the date of the first funding).