Towards the end of the HSA interview, you probably saw
"What type of High Deductible Health Plan did [your name or your spouse's]
have on December 1, 2016?" This is actually correct and refers to the
"last month rule".
TurboTax
needs to know several things:
1. Did
you or your spouse have HDHP coverage on December 1, 2016? (yes, 2016)
2. If
so, you or your spouse may have taken advantage of the "last month"
rule, which allows taxpayers in HDHP coverage on December 1 to use the full
annual amount for the HSA contribution limit (back in 2016).
3. BUT,
the catch is that you or your spouse has to stay covered by the HDHP for the
next 12 months (i.e., all of 2017), or else the annual limit for 2016 has to be
adjusted after the fact.
4. You
evidently indicated earlier that you or your spouse either changed coverage in
2017 or had no coverage for at least part of the year - this triggered the
question above.
In any
case, the screen heading is correct, and just answer it as it is literally
written.
