HSA: If I lost my HDHP half-way through the year, can I still make my contributions for last year?

Submitted by MongooseMongeese t3_10pvoex in personalfinance

Or did I lose the ability to do so the second I lost that coverage and took on my new (better) insurance? My HSA company let me know today that I'm now as of 1/2023 responsible for the maintenance fee if my balance is lower than 2500 (which it is) so I want to either throw in a lump sum to get me over that line or just find a way to spend it.

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BouncyEgg t1_j6mdpu0 wrote

Clarify, exactly when did you have HDHP?

Most interested in the 1st of every month.

Clarify when the HDHP was "lost?"

Clarify, what coverage you had on 12/1/2022?

Clarify, what coverage you have since 2023 began?

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MongooseMongeese OP t1_j6mehtf wrote

I had the HDHP for 5-6 years with my last employer, until end of June 2022. My new employer's coverage does not qualify as an HDHP. I forget the name of the insurance company that I have but I know it is not an HDHP.

On 12/1/2022 I did not have the HDHP and have not hit the yearly contribution cap yet for 2022.

Since ~July 2022 and through to present I have a non-HDHP.

I hope that makes sense!

Edit: Confused 12/22 and 1/22

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BouncyEgg t1_j6mepe0 wrote

It made sense until you said:

> On 12/1/2022 I had the HDHP

Because you also said:

> Since ~July 2022 and through to present I have a non-HDHP.

So... you didn't have HDHP 12/1/2022 then... right? (and basically don't plan on having HDHP for entirety of 2023)

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MongooseMongeese OP t1_j6mezzc wrote

Oh! Sorry, it's early here. I read 12/1 and my tired brain thought January. I'll edit to correct, but yes as of 12/1 I did not have the HDHP. And correct, I don't plan to have another HDHP for 2023.

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BouncyEgg t1_j6mfaio wrote

Then by this:

> I had the HDHP for 5-6 years with my last employer, until end of June 2022.

You have unlocked 6/12 of the HSA maximum.

This simplifies to 1/2 of the HSA maximum.

This is the total you (including employer) can contribute to the HSA for 2022.

If you have not hit half of the max HSA for 2022, then you can make a contribution directly (out of your bank account).

You can also consider moving the HSA to somewhere with no fees and allows you to invest the money in whatever you want.

Fidelity is the one you should consider.

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MongooseMongeese OP t1_j6mfz3y wrote

Thank you so much! That is much simpler than I anticipated. I didn't even know I could roll over an HSA the same way I can rollover a 403(b) so that is GREAT to know as well!

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