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HSA

I put the max in for my HSA and recently got laid off.   Is that going to be an issue at tax time?

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HSA

Possibly.

 

You can only contribute to an HSA for the months where you are covered by a qualifying HDHP (determined on the first day of each month).  You can also use the last month rule, that if you are covered by a qualifying plan on December 1, you can contribute the full amount for the year even if you weren't covered for some of the earlier months.

 

So the answer depends on what kind of coverage you have now (no coverage, you kept your HDHP under COBRA, you are covered by a spouse's non-qualified plan, etc.), and what kind of coverage you have on December 1 (if you get a new job before then and enroll in a qualifying HDHP again).

 

If your coverage situation ends up that you over-contributed, you have until April 15 next year (the tax filing deadline) to remove the excess contribution and avoid any penalties.  So the right time to ask what your next steps are, is December 2, because then you will know what your insurance situation was for all the months of 2024 and whether you qualify for the last month rule. 

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