I just started a high deductible healthcare plan in July of 2021. Can I still make the max contribution amount as if I had it the entire year? Or can it only be a certain percentage of the max since it was not open the entire year last year?
I am seeing different answers. Some say if it was set in August, you can contribute the full year max, others say you have to take a percentage since you did not have a high deductible health plan for the full 12 months.
There is a "last month rule" though, which talks about if you have the high deductible health plan on December 1, you can contribute the same amount as if you had the plan for the entire year? Can anyone confirm that? Or am I reading it wrong?
That looks correct if you have health savings account-eligible insurance in all of 2022. https://www.optum.com/content/dam/optum/consumer-activation/unknown/HSA_Mid_Year_Changes.pdf
Most of the cited text from the Optum website has been copied or paraphrased from IRS Publication 969, which I have attached. The IRS has not updated this publication for 2021 or 2022. But the basic rules have not changed. If you choose to read this publication, you need to be aware that was written in early 2021, and it is meant to assist in the preparation of a tax return for the calendar year 2020. The text contains some very useful concrete examples, but you have to adjust the years in question. I have also attached a page from a professional tax reference book that we use in my office. It also has some useful examples. BMK