Some questions came up about the HSA Contribution Schedule - Martin over at HSAFocal Point does a great job on answering that:

The HSA legislation passed by Congress late last year offered many additional benefits not the least of which was the ability for a qualified HSA plan (HDHP) member to fully fund their health savings account regardless of when in the year they became covered by the plan. The only qualifier is that the plan member would have to stay on the qualified HSA health plan throughout what was called the “testing” or “deeming” period.

Unfortunately, the language in the bill was a bit confusing. It was clear that a person who became eligible in December could fully fund their HSA for that entire year so long as they stayed on an HSA-qualified health plan though December of the following year.

What was not so clear is what happens to the person who becomes eligible in June. Must they stay on the HSA plan through June the following year, or through December of the following year?

The answer that we received from the U.S. Treasury Department stated that the 12 month “testing period” is from the end of year. In other words, if the HSA is established in June with June 1, HDHP coverage, the individual must stay eligible until December 31, of next year.

This is probably not the answer most people will want to hear, but it is good to know.

This news came on the same day it was reported in Business Insurance that the Internal Revenue Service has proposed regulations that would allow employers that contribute to employees’ health savings accounts to accelerate contributions for employees whose medical care expenses are greater than what the employer has so far contributed to the HSA during the year.

Business Insurance reported that such an acceleration would enhance the appeal of HSAs by reducing employees’ concerns that their accounts could be exhausted if they incur big medical bills early in the year before employers make all of their contributions.

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