Yes, one could have deposited funds in January; not necessary to wait for the policy to be effective, although most people probably do. The rule is that you're considered an "eligible individual" for the entire year based on the 12 month rule, and to contribute to an HSA you must be an eligible individual.Oh nice. Related questions. Could he have deposited funds in January since it was the same tax year? Or, does one have to wait until the policy is effective?
You can frontload.
The annual limit is calculated based on the situation each month, but that annual limit doesn't impact when the contributions can be made within the year.
The last month rule essentially means that you're treated as having been eligible for all 12 months. I think it's intended to help people jumpstart their HSAs in that first year of eligibility.
See https://www.irs.gov/instructions/i8889# ... 971yd0e185
Statistics: Posted by secondcor521 — Thu Feb 13, 2025 12:05 am — Replies 8 — Views 928