Posted by Joe Wride
HSA contribution rules seem pretty straightforward at first. However, the rules become complicated in years when there will be a change to coverage. Perhaps you are moving from individual to family coverage, or you are leaving your health plan, or are starting Medicare. It’s at those times that the HSA contribution rules can become confusing.
To help make the conversation easier, we have created the “Can I Make A Deductible Contribution To My HSA?” flowchart. It addresses some of the most common issues that arise for a client trying to contribute to an HSA. This flowchart considers:
- The minimum deductible requirements for HDHP
- The maximum out-of-pocket expense for HDHP
- Contribution amounts
- Impact if HDHP coverage starts or changes this year
- Full Contribution Rule
- HSA and Medicare coordination
- Situations allowing for a pro-rata contribution
Flowchart: Can I Make a Deductible Contribution to my HSA? - 2020
Flowchart: Can I Make a Deductible Contribution to my HSA? - 2021
Will The Distribution From My HSA be Tax & Penalty-Free?