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Level 2
posted Dec 15, 2019 8:13:17 AM

HSA Contribution - Weird Timing Situation

Hello,

 

I had insurance through my prior employer from January 1st, 2019 - November 30th where I was able to contribute (and did so) to my HSA.

 

I did not have insurance December 1st, 2019.

 

My insurance with my new employer began on December 2nd (and is HSA eligible).  Am I able to finish my 2019 contributions or because I technically did not have insurance on the first day of December...can I not contribute for the month of December?

 

Thank you.

 

Chris

0 2 898
1 Best answer
Level 15
Dec 15, 2019 12:27:38 PM

Because you did not have HSA-compatible insurance on December 1, 2019 you are not an eligible individual for December.  For 2019 you are only eligible to contribute 11/12 of the annual maximum contribution.

 

Because you were not an eligible individual on December 1, the last-month rule does not apply.

 

In 2019 TurboTax, indicate that you had no HDHP insurance for December.

2 Replies
Level 15
Dec 15, 2019 12:27:38 PM

Because you did not have HSA-compatible insurance on December 1, 2019 you are not an eligible individual for December.  For 2019 you are only eligible to contribute 11/12 of the annual maximum contribution.

 

Because you were not an eligible individual on December 1, the last-month rule does not apply.

 

In 2019 TurboTax, indicate that you had no HDHP insurance for December.

Level 2
Dec 15, 2019 3:03:00 PM

Darn. That is what I thought. 

 

I read online that if your insurance is not active on the first of the month, you have to wait to the next month. O well. At least I got to contribute for the other 11 months. 

Thanks.