2 Responses

  1. David says:

    When I left MegaCorp in January, 2013, they were just rolling everyone into a HDHP. IIRC, they paid 100% of the premiums and also contributed 100% of the HSA, split into two payments, one on January 1st, the other on July 1st. Since I knew I was leaving on January 10th, I maxed out the remainder of my HSA contribution. It wasn’t until tax time in April 2014 that I found out that was a no-no and had to withdraw excess funds and pay taxes on it. But I still came out ahead due to the free contribution money for the 6 months I was there.

    Later, DumpsterFire Inc moved us all to HDHPs but only contributed a monthly portion, but I’m not remembering the amount exactly, It was probably $200/month for the family or $2400/year. I maxed out the rest of the contribution each year, but spread it over the year. I left DumpsterFire Inc. for my current employer in 2017, but because I was contributing monthly, I didn’t have the same issue of contributing too much.

    Currently, I’m on a HDHP but with an HRA, so the HSA is no longer relevant. But I’m still enjoying your posts and will likely run into an HSA in the future.

    • Max OOP says:

      I got hit on something like that with a Roth IRA a few years back where I needed to recharacterize it for some reason. I can’t recall the error, but the paperwork was a pain, and it wasn’t much money.

      I think monthly HSA contributions is a solid option as well. I could probably set that up with my employer, or even split it between all 26 checks, but decided to go quarterly. I think I was thinking the fewer transactions the easier because I would also need to automate the investment platform as well.

      Glad to hear you have moved around a few different employers. It is a great way to learn the ins and outs of some of this stuff.

      Thanks for stopping by and contributing to the conversation!


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