Deadline to ESTABLISH an HSA for 2006?

[namealreadyinuse]

I know you can fund by your tax return due date (does that include extensions??), but do you have to have the HSA in place by 12/31/06? I don't know if HSAs use the IRA rule or the SEP rule.

Thanks!

[Jacmo]

No. Your HSA can be in place no sooner than the first of a month you are covered by a HDHP. And of course it can be in place as late as April 15th, 2007 for 2006. (All of this is subject to other funding requirements such as the 1/12th rule for 2006 and prior.)

Extensions are not included.

[namealreadyinuse]

Great - Thanks!

If eligible in 2006 and 2007, but you don't establish your HSA until Feb 2007, how do you designate whether the contribution is for 2006 or 2007? Do you do it on your tax return effectively?

[Jacmo]

Yes--similar to the way you would do it for an IRA. And most likely, the custodian will require you to fill out the correct form and designate which year you are making the contribution for.