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Could use guidcance with some details if anyone works with HSA's. Thanks in advance.
I can't give tax advice, but some idea about the rules would be helpful. EE did not sign up for HSA until halfway through group renewal year. Enrolled in HDHP 12/1/2013, HSA enrollment was last week.
I am assuming that they must pro-rate annual amount of allowable contribution to # of months HSA open.
One additional question, assuming the need to pro-rate contributions for 2014. Does month in which account opened count as full month, pro-rated by days account was open during 1st month, or jump to next full calendar month?
Next question. If health plan is not calendar year, is contribution year still tax year? That would make sense.
I can't give tax advice, but some idea about the rules would be helpful. EE did not sign up for HSA until halfway through group renewal year. Enrolled in HDHP 12/1/2013, HSA enrollment was last week.
I am assuming that they must pro-rate annual amount of allowable contribution to # of months HSA open.
One additional question, assuming the need to pro-rate contributions for 2014. Does month in which account opened count as full month, pro-rated by days account was open during 1st month, or jump to next full calendar month?
Next question. If health plan is not calendar year, is contribution year still tax year? That would make sense.