Can I make a deductible contribution to my HSA?

HSAs are tax-advantaged savings accounts for individuals who are covered under a High-Deductible Health Plan (HDHP). While the contribution rules are generally straightforward, there are some situations that can complicate the process, such as changes in healthcare coverage.

To determine whether you can make a deductible contribution to their HSA, the following factors should be considered:

Minimum deductible requirements for HDHP: Your HDHP must meet certain minimum deductible requirements in order to qualify for an HSA contribution.

Maximum out-of-pocket expense for HDHP: Your HDHP must also meet certain maximum out-of-pocket expense requirements to qualify for an HSA contribution.

Contribution amounts: Your contribution limit will depend on your age and the type of HDHP coverage you have.

Impact of HDHP coverage changes: If your HDHP coverage changes during the year, the HSA contribution rules may change as well.

Full Contribution Rule and Last-Month Rules: You must be aware of the Full Contribution Rule and Last-Month Rules, which may impact their HSA contribution limit if they are not covered by an HDHP for the full year.

HSA and Medicare coordination: If you are enrolled in Medicare, they may still be eligible to contribute to an HSA, but there are specific rules and limitations to consider.

It's important to note that there may be other factors or considerations that impact your ability to make a deductible contribution to your HSA. You should consult with a financial advisor or tax professional to ensure they understand the specific rules and implications of making an HSA contribution in their individual situation.

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.