HSA Contribution Question

[Jerry1]

I’m currently living off my severance package which included one year of healthcare insurance. Coverage will end on 1/31/2019 at which time I will go on retiree healthcare which is a standard PPO plan (not a HDHP).

My question is if I’ll be able to fund my HSA for the full year at the beginning of 2019 given that I will begin the year on a HDHP. All the googling I found only answered the question of how to handle going on a HDHP/HSA mid-year, nothing about going off.

I’m thinking that the first of January, I can make full contribution for 2019 and fund my HSA one last time.

 

[MBSC]

HSA contributions are calculated month-to-month. You can make 1/12 of the regular HSA contribution and 1/12 of the $1000 age 55+ catch-up contribution.

2. How is my contribution limit impacted if I lose my eligibility during the year?
You must pro-rate your contribution based on the number of months during which you were HSA-eligible on the first day of the month.

Example: You [lose the HDHP] effective Oct. 31, 2018. You were covered on a self-only contract during the first 10 months of the year. Your maximum contribution for 2018 is 10/12 of $3,450, or $2,875. In addition, assuming you’re age 55 or older, you can contribute 10/12 of $1,000, or $833.33.

Reference: https://www.benstrat.com/downloads/HSA-GPS_HSAs-and-Partial-Year-Eligibility.pdf

 

[Jerry1]

Thanks. Hoping for the entire year, but I guess one month is better than nothing.