need advice with HSA account MAX contribution

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kennedy1979
Posts: 2
Joined: Tue Nov 06, 2018 11:08 pm

need advice with HSA account MAX contribution

Post by kennedy1979 » Tue Nov 06, 2018 11:18 pm

Hello,
I need your advice with my HSA account.

I recently enrolled in Medical Health Insurance with HSA account with my employer. My wife and I are covered in the insurance.

The financial year of my employer is from Oct to Sep. So the coverage started on 1st Oct 2018 for FY19.

We anticipate huge medical bills in March 2019. We want to have enough balance in our HSA account to pay the bills in March.

Since we have only 3 months left in 2018 calendar year how much max bulk amount can I contribute to our HSA account?

I am not able to find any information. Please advise.

SublimeBri
Posts: 2
Joined: Tue Jan 13, 2015 6:34 am

Re: need advice with HSA account MAX contribution

Post by SublimeBri » Wed Nov 07, 2018 7:23 am

Contributions to HSA's are prorated based on the amount of time you have had the plan. So, if you are only eligible for 3 out of 12 months - then you can contribute 1/4 of the max to the HSA. Here is a link that talks more about it.

https://www.peoplekeep.com/blog/2018-hs ... ion-limits

amitb00
Posts: 430
Joined: Sun Jan 01, 2012 9:04 am

Re: need advice with HSA account MAX contribution

Post by amitb00 » Wed Nov 07, 2018 7:31 am

In addition there is last month rule. If you are eligible for HSA on 1-Dec, you can assume you are eligible for whole year provided you continue the insurance in the following year. So you can contribute max amount in 2018 provided insurance continues with you for whole year. HTH

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Artful Dodger
Posts: 480
Joined: Thu Oct 20, 2016 12:56 pm

Re: need advice with HSA account MAX contribution

Post by Artful Dodger » Wed Nov 07, 2018 7:58 am

You'll be able to contribute the max amount for 2018, $6900, due to the last month rule. You can contribute that amount anytime up to the 2018 tax filing deadline. You can then make a contribution for 2019, after Jan. 1. If you're signed up through September, the safe approach would be to contribute 9/12s immediately, then the balance when you renew HSA plan next fall.

You don't mention your age, but there is also an additional $1000 allowed if you're 55 or older.

eukonomos
Posts: 15
Joined: Mon Jan 01, 2018 2:26 pm

Re: need advice with HSA account MAX contribution

Post by eukonomos » Wed Nov 07, 2018 7:51 pm

Artful Dodger wrote:
Wed Nov 07, 2018 7:58 am

You don't mention your age, but there is also an additional $1000 allowed if you're 55 or older.
And another $1000 if you are both 55 or over and have HSA accounts for each.

kennedy1979
Posts: 2
Joined: Tue Nov 06, 2018 11:08 pm

Re: need advice with HSA account MAX contribution

Post by kennedy1979 » Thu Nov 08, 2018 12:53 pm

Thank you ALL .

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