dmwe Posted June 2, 2021 Share Posted June 2, 2021 When someone over age 55 switches from Family to Single coverage May 1st, does the annual limit you use to calculate the prorata annual contribution limit include the Catchup $1000? So $8200 for 4 months, then $4600 for 8 months. Or do you use the annual limit of $7200 or $3600 for the prorata calculations, and then add the $1000 to that? Thanks Link to comment Share on other sites More sharing options...
Brian Gilmore Posted June 2, 2021 Share Posted June 2, 2021 It's the former. The IRS Form 8889 Instructions have a pretty easy worksheet (copied below) where you plug in the applicable amounts: https://www.irs.gov/pub/irs-pdf/i8889.pdf Your situation should come out to $5,800. $8,200 x 4 = $32,800. $4,600 x 8 = $36,800. $32,800 + $36,800 = $69,600 / 12 = $5,800. Note that things get a little more complicated with the catch-up when both spouses are HSA-eligible and at least one is enrolled in family HDHP coverage. In that case, the special spousal combined limit applies, and each spouse may be eligible to contribute a catch-up to their own HSA. Here's a couple posts walking through that issue: https://www.theabdteam.com/blog/hsa-catch-up-contributions/ https://www.theabdteam.com/blog/special-hsa-contribution-limit-for-spouses/ 2021 ABD Go All the Way With HSA Guide (slide 17) Link to comment Share on other sites More sharing options...
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