Short HDHP Plan Year

[Guest elatchana]

This is my first post!

I have a question about changing HDHP plan years. We currently have an HDHP w/ HSA, and the plan year runs from 7/1-6/30. We want to change it to a calendar year without losing HDHP status in the meantime. Does anyone have an idea of how this should be done? Is it allowable to have a qualifying HDHP from 7/1-12/31 so that we can start with a fresh calendar year HDHP in January? The IRS notices do not address whether the minimum deductible can be prorated for a short (6 month) plan year; however, we also do not want to require the full annual minumum required deductible for a plan year that only lasts 6 months. Any suggestions?

Thank you.

[jmor99]

Create a short plan year for the HDHP. The HSA will kinda take care of itself because it's already on a calendar year. The ee's have been making HSA contributions since jan. 1, right? Question: did your insuranc carrier start over on the deductible on Jan. 1 or have they carried forward (from the previous 6 months--7/1-12/31)?

This could be a real can of worms.

[GBurns]

This might help you. See Q 22 et seq:

http://www.irs.gov/irb/2004-33_IRB/ar08.html#d0e1696