1 Response

  1. David says:

    Thanks for the post.

    In 2012, I ran into the partial year eligibility without knowing it. I was working for a company that switched over to HDHP and HSAs. They would fund their contribution twice a year: Jan 1st and July 1st. I maxed out my individual contribution on Jan. 1st for the year. Then I left that employer on Jan. 10th, not realizing the eligibility issue until the following tax season. To correct things, I had to file an “excess contribution” form with my HSA provider and withdraw the extra money, realizing it as regular income. Unfortunately, I’d also moved to a different state that had a state income tax, so the dispersement was subject to state taxes. But overall, I ended up coming out even or a little ahead because the generosity of my employer’s twice a year contribution.

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