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June 1, 2019
Question

Last Month Rule

  • June 1, 2019
  • 1 reply
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Please explain this further. I began my HSA in June, and the description was talking about making a deposit in December based on the fact that I was eligible the whole year. What does this mean?

1 reply

ghost
Employee
June 1, 2019
If you are eligible for HSA contribution on December 1, 2016, the last month rule allows you to contribute the full annual amount (as opposed to a reduced amount based on your actual eligible months). If you elect to use this option, you must remain eligible for the next 12 months or penalties will apply.