I had several changes in health insurance coverage during 2017.
Based on what month which members of the family were covered by HDHP, I figured that my max contribution for the year is $5,070.
However, I can contributed the full family contribution of $6,750 based on the last month of 2017, provided I keep family HDHP for the whole 2018.
This is a difference of additional $1,680 I can contribute to HSA for 2017.
If I don't stay eligible for the whole 2018, then the excess amount contributed for 2017 will be taxed and penalized at 10%.
My effective tax rate for 2017 is about 6-8%, I haven't finished my taxes yet.
My job doesn't have cafeteria plan, so I am still paying FICA on my HSA contributions.
The thing is, I am currently looking for a new job. It's not going great, very few positions available, and they are hard to get. So I may find something in the next month or two, or stay where I am through the end of year.
If I move to a new job, it is not guaranteed that they will have HDHP available. Some positions I applied for but did get stated that they had 100% employer paid health insurance, whatever that means.
So, what would you do? Contribute based on the last month of the year, or stay with the actual amount of contributions that I am 100% eligible to make.
