spouse moved from hdhp family to individual pop

[pradeepinp6]

Spouse, myself and kid was on HDHP family plan through my employer  till Dec'22. From jan'23 myself and kid on HDHP family plan. spouse moved to her employer ppo plan(individual). 

If I answer HDHP (yes) to “What type of High Deductible Health Plan did [spouse] have on December 1, 2022.

System considers there is laps in spouse plan in 2023. 

How to answer this scenario?

[BillM223]

You answer truthfully, that your spouse had Family coverage on December 1, 2022.

From this, TurboTax determines that she could have used the "last-month rule" in December 2022. This rule allows you to use the full annual HSA contribution limit whether or not you were under the HDHP for each and every month. The catch is that you must stay under HDHP coverage for the 12 months that follow, or be considered "lapsed". She did not stay under HDHP coverage.

You will now have to answer a lot of questions, the point of which is to determine if your spouse had more HSA deductions permitted than would have been allowed without the last-month rule. The answer will depend on whether or not she has her own HSA, who between you two contributed to which HSA and so on.

So tighten your belts and go through the interview. It may work out for the best.