Page 21 - Tacony 2021 Annual Benefits

Proration

‹ If you do not meet one of the “Annual
Contribution Requirements”
 Your annual eligible HSA contribution amount
must be prorated on a monthly basis

 An eligible month is determined based on the
irst day of the month for each month enrolled
in a qualiied plan; you are eligible to contribute
1/12 of the annual HSA contribution amount
for each eligible month
 As an example, if you enroll in an HSA-
qualiied plan on July 15, 2021, you are not
eligible to make HSA contributions until August
1, 2021

 If you remain in the plan (and continue to
be HSA eligible) until the end of 2020, but
terminate coverage on December 31, 2021
you would only be eligible to contribute
5/12th of the annual HSA contribution
limit for 2020 (you would not meet either of
the annual contribution requirements above)
 If you remained HSA-eligible from July
15, 2021 until December 31, 2021, you
would be eligible to contribute the full
annual amount for 2021 (you meet HSA
contribution requirement number 2)

 Legally, your deductible (your responsibility
before coinsurance begins) may not be
prorated

Does Proration Mean I Can Only Fund the
Account on a Monthly Basis, Depositing
1/12 per Month?

No, you may deposit funds at any time during the tax
year, provided the annual amount does not exceed the
amount you are annually eligible to contribute. This
guideline is based on each month you are eligible.
However, you can use HSA funds only for services
which occur after the HSA has been opened (see the
disbursement rules in the distributions section).

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