What is the HSA Contribution Limit If My Health Insurance Started June 1?

If your health insurance started on June 1, you would be eligible to contribute to a Health Savings Account (HSA) for the remaining months of the year. The HSA contribution limit for the year depends on the type of health insurance plan you have and when it was effective.

For individuals with self-only coverage, the annual HSA contribution limit for 2021 is $3,600, and for those with family coverage, the limit is $7,200.

Since your health insurance started in June, you can contribute a prorated amount based on the number of months you are eligible for an HSA. In this case, you would be eligible to contribute half of the annual limit.

Here's how you can calculate your HSA contribution limit:

• Determine the annual contribution limit based on your coverage type ($3,600 for self-only or $7,200 for family).
• Divide the annual limit by 12 to get the monthly limit.
• Multiply the monthly limit by the number of months you are eligible to contribute (7 months for June to December).

Following this calculation, if you have self-only coverage, your prorated HSA contribution limit would be $1,800, and if you have family coverage, it would be $3,600.

It's important to note that these contribution limits are subject to change each year, so be sure to check the most up-to-date information from the IRS or your HSA provider.

If your health insurance kicked in on June 1, you're likely wondering how much you can contribute to your Health Savings Account (HSA) for the rest of the year. Good news! You're eligible to make contributions based on the remaining months.

The contribution limits vary depending on whether you have self-only coverage or family coverage. For self-only coverage, the annual limit for 2021 is $3,600, while family coverage is capped at $7,200.

Since your coverage began mid-year, you'll need to do a little math to determine your contribution limit. Since June is the starting month, you can contribute half of the annual limit, which translates to a prorated calculation.

Here’s how to break it down:

• Identify your annual limit based on your coverage type (either $3,600 for self-only, or $7,200 for family).
• Calculate the monthly contribution limit by dividing the annual amount by 12.
• Multiply the monthly limit by the number of months eligible (from June to December, that's 7 months).

Thus, if you have self-only coverage, you can contribute up to $1,800, while family coverage allows for contributions of up to $3,600 until the end of the year. Please remember to keep abreast of these limits since they can change yearly, and always check reliable sources like the IRS for the latest guidelines.