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Did I make a contribution to a HSA based on the last month-rule?

Forum|Forum|7 years ago
June 1, 2019
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I need this explained a different way, I don't understand the question.

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Best answer by BillM223

The "last month" rule applies only if you started in the HSA during 2016. If you were in the HSA all year, then you would answer "No" to the question asking if you made contributions under the last month rule.

If, however, you started in the HSA sometime during 2016, then you would be allowed the full annual contribution limit if you were eligible for the HSA on December 1, 2016 (i.e., the "last month"). In this case, you would answer "yes" in order to get the full annual limit.

The last month rule is simply a mechanism to permit you to contribute up to the full annual limit, even if you hadn't been in the HSA all year.

B

BillM223Answer

The "last month" rule applies only if you started in the HSA during 2016. If you were in the HSA all year, then you would answer "No" to the question asking if you made contributions under the last month rule.

If, however, you started in the HSA sometime during 2016, then you would be allowed the full annual contribution limit if you were eligible for the HSA on December 1, 2016 (i.e., the "last month"). In this case, you would answer "yes" in order to get the full annual limit.

The last month rule is simply a mechanism to permit you to contribute up to the full annual limit, even if you hadn't been in the HSA all year.

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