HSA partial year coverage

Forum|Forum|5 years ago
March 6, 2021
1 reply
6 views

Hi,

I was on a 2020 HDHP Family coverage and contributed the maximum amount. I left my previous employer on December 4, 2020 and started with my new employer on December 7, 2020 with a Non-HDHP.

Is this considered a partial year because I was not on the HDHP until December 31, 2020?

Thanks,

Mike

Best answer by BillM223

No. The IRS considers your coverage to be determined by what you had on the first day of the month.

Since you had HDHP coverage on December 1, 2020, you were considered covered for all of December, and I suppose, for the entire year, if you had been under that coverage all year.

So, this is not a partial year - the time under the non-HDHP coverage doesn't count because it started after the 1st of the month.

BillM223Answer

Level 15

No. The IRS considers your coverage to be determined by what you had on the first day of the month.

Since you had HDHP coverage on December 1, 2020, you were considered covered for all of December, and I suppose, for the entire year, if you had been under that coverage all year.

So, this is not a partial year - the time under the non-HDHP coverage doesn't count because it started after the 1st of the month.

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