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The last month rule allows you to contribute to your HSA using the full annual limit, even if you had not been in the HSA all year. You have to have been in your HSA no later than December 1, 2015.
The reason for this question is because if you contributed according to the last month rule in 2015, you must have remained in your HSA until at least December 1, 2016, or face a penalty. Obviously, you don't know this until you do your 2016 return.
"Contributions" below refers to contributions either by the employer or by the taxpayer. This answer is for tax year 2016.
- Answer "no" to the last month rule question if the taxpayer made no HSA contributions in 2015 (yes, 2015), because it doesn't apply to him.
- Answer "no" to the last month rule question if the taxpayer had the HSA in 2015 and was in the HSA all year, because it doesn't apply to anyone who was in the HSA all the previous year.
- Answer "no" to the last month rule if the taxpayer was not in an HSA at all in 2015.
- You would only answer "yes" to the last month rule question if the taxpayer started the HSA sometime in 2015 after January 1, 2015, and before December 2, 2015, and made contributions. In this case, he may have made the full annual contribution, but if he had, he would have needed to stay in the HSA through December of 2016 to avoid any limitations.
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