The last-month rule allows contributions to be made up until the due date of the filing of the return, not including extensions if the you were covered by an HDHP by December 1 of the tax year.However, if you contribute the full amount for the year in which HDHP coverage began on ...
The Last-Month Rule Under the so-called last-month rule, you can contribute the maximum even if you are eligible for an HSA for less than the full year. According to theInternal Revenue Service (IRS), if you are eligible for a plan on the first day of the last month of the tax ye...
The last-month ruleallows eligible individuals to make a full contribution for the year, even if they were not a qualified individual for the entire year. Individuals can make the total contribution for the year if: They are eligible individuals on the first day of the last month of their t...
A 2 month +15 day grace period:any unused funds contributed in a given year can be used in the first 2 months and 15 days of the following year. AnFSA carryover rule:allowing an inflation-adjusted 20% carryover or rollover amount. So, unlike with an HSA, where you can just contribute...
The system also allows for some flexibility. The Last Month Rule states that if a person is deemed eligible for an HSA on the first day of the final month of the tax year (December 1 for most people), that person has eligibility for the entire year (in other words, the previous 11 ...