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Level 2
posted Jun 20, 2023 5:03:48 AM

Partial year HSA deduction

Planing ahead for this years return.

My wife and I had a HDHP health insurance plan thru May 31 this year.  As of June 1 my new employer offered, and we enrolled in, a great health insurance plan but which is not HSA eligible.  Is our HSA contribution for 2023 prorated for 5 months of the yearly eligible amount?  We are both over 60.  I would like to maximize my deduction and also be able to utilize the HSA to pay eligible expenses.

Thanks!

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1 Best answer
Level 15
Jun 20, 2023 5:36:07 AM

Yes, the family limit and each of your catch-up limits is prorated for the 5 months that you were HSA eligible.  For 2023 that means a family limit of $3,229,17 split between the two of you in any way you choose and each of you can make a catch-up contribution of $416.67 to your separate HSA accounts.

1 Replies
Level 15
Jun 20, 2023 5:36:07 AM

Yes, the family limit and each of your catch-up limits is prorated for the 5 months that you were HSA eligible.  For 2023 that means a family limit of $3,229,17 split between the two of you in any way you choose and each of you can make a catch-up contribution of $416.67 to your separate HSA accounts.