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HSA Last Month Rule/Testing Period Question

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  • HSA Last Month Rule/Testing Period Question

    My situation: I married by husband in June 2015. Marriage opened up a special eligibility and we switched to a HDHP/HSA via my work. He was a student so he switched from student insurance to my employer insurance.  We contributed the maximum $6650 to the HSA for 2015 based on the "last month rule".

    I understand that we both need to have a HDHP/HSA throughout 2016 after making contributions under the "last month rule" in 2015.  However, now I graduated from fellowship and he graduated from his professional school and we both start new jobs August 2016.  It may be less expensive for us to be covered individually rather than to do a family plan via one of our employers.  If we each switch to an individual HDHP through our respective employers and therefore we are not covered under a family HDHP for all of 2016, then would we fail the "Testing period"?  We do not have children to cover with insurance.


  • #2
    WCICON24 EarlyBird
    If you change from family HDHP coverage to single HDHP coverage during the testing period that does not result in test failure, so no problems given the scenario presented.
    My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
    Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients