Help with HSA Questions

[yorkriver1]

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.

 

[Yagents]

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.

HSA's are on tax year basis
Since HDHP effective 12/1/13, they can open an HSA account wherever they want and fully fund for 2014 assuming own HDHP for full 14' year.
Only thing lost, is expenses before HSA opened, are not eligible for tax free disbursement.

HSAconsumer.com for more info