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 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...
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 ...
In exchange for the tax benefits offered by an HSA, there are specific rules and penalties for not adhering to them. The most important rule is that while all withdrawals used forqualified medical expensesare tax-free, regardless of age, withdrawals made for any other purpose will be t...