Author Topic: HSA eligibility- changing employers, possibly no longer on HSA eligible plan  (Read 1571 times)

MoneyRx

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Haven't been able to find the correct info on this, wondering if anyone knows the answer:

I will be changing employers in mid 2015. I am unsure if the new employer will offer a High Deductible, HSA eligible plan (I may elect not to take it even if they do since we may be having a kid by the end of the year).

My current employer put $2000 into an HSA for me at the start of 2015. Will I still be able to deduct this from my 2015 taxes if I switch to a non-HSA PPO plan later in the year? What about contributions I make myself?

Is there a certain portion of the year you have to have an HSA eligible plan or is it all or nothing?


seattlecyclone

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Your maximum HSA contribution is pro-rated if you switch away from an HDHP mid-year. If your employer's contribution puts you over the limit, you should withdraw it and declare it as "other income" on your tax return. See the instructions for form 8889 and Publication 969 for more info.

MoneyRx

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Thanks! I don't think it will since 2000/6650= .30 and .30 x 12 = 3.6 months. So as long as I have my current plan through April, which I will, then I should be good.