Effective January 1, 2007, regardless of your deductible, you may contribute, per calendar year, up to the IRS annually indexed maximum regardless of your coverage type (single vs. family). If you are age 55 or older, you can also make additional “catch-up” contributions.
The “full contribution rule” allows a full-year’s worth of HSA contributions for someone who is HSA-eligible for only a portion of the year. Under the full-contribution rules, an individual who becomes covered under a high deductible health plan (HDHP) in a month other than January and who is HSA-eligible on December 1 of that year, is treated as having been an eligible individual during every month of that year, and will be allowed to make contribution for those months during the year before the individual actually enrolled in an HDHP.
- Individuals who enroll in the HDHP by December 1 can make a full-year contribution to the HSA that year.
- Individuals must be covered by a qualified HDHP and remain an eligible individual for 12 months after the end of the calendar year in which they enrolled in an HDHP.
- Individuals not covered by an HDHP for 12 months after the end of the calendar year in which they enrolled in an HDHP are subject to income tax and a 10% excise tax on HSA contributions for months not covered by an HDHP.