Page 14 - 2018 SLU New Hire Guide
P. 14
Contributing to Your HSA
Pro-Rating Your HSA
Contribution When you enroll in the QHDHP Plan for 2018, you can make pre-tax
As explained, if you enroll in the contributions to your HSA through payroll deductions. It’s your choice
QHDHP mid-year and do not intend to contribute or not. The IRS limits the amount of pre-tax dollars you
on remaining in the QHDHP for can contribute to your HSA each year. For 2018, you can contribute up
the following calendar year, you to $3,450 for single coverage and $6,850 for family coverage. If you are
need to pro-rate your tax-free HSA age 55 or older by the end of 2018, you may also contribute an additional
contributions. To pro-rate, take the
total annual contribution allowed $1,000 as a “catch-up” contribution.
based on your coverage level, multiply
it by the number of months in the If you enroll in the QHDHP mid-year and were not previously enrolled
year you qualify, then divide the in a QHDHP, you may contribute the entire year’s tax-free contribution
amount by 12. Your eligibility is based only if you are HSA-eligible before December 1 and remain enrolled
on your coverage status on the irst in the QHDHP for the following calendar year. If you enroll in the
day of the month. For example, if you
enrolled in the QHDHP Plan on April 1, QHDHP before December 1 but do not remain enrolled the following
your annual tax-free contribution limit calendar year, or if you enroll after December 1, you must pro-rate your
is as follows. HSA tax-free contribution based on the number of months you were
eligible to contribute.
Single Coverage
$3,450 × 9/12 = $2,587.50
Remember
Family Coverage For more information, please see IRS Publication 969, consult a tax
$6,850 × 9/12 = $5,137.50 advisor, or both. You are responsible for monitoring and adjusting your
contributions throughout the year to ensure compliance with federal laws
and limitations which apply to HSAs.
14 2018 New Hire Guide
Pro-Rating Your HSA
Contribution When you enroll in the QHDHP Plan for 2018, you can make pre-tax
As explained, if you enroll in the contributions to your HSA through payroll deductions. It’s your choice
QHDHP mid-year and do not intend to contribute or not. The IRS limits the amount of pre-tax dollars you
on remaining in the QHDHP for can contribute to your HSA each year. For 2018, you can contribute up
the following calendar year, you to $3,450 for single coverage and $6,850 for family coverage. If you are
need to pro-rate your tax-free HSA age 55 or older by the end of 2018, you may also contribute an additional
contributions. To pro-rate, take the
total annual contribution allowed $1,000 as a “catch-up” contribution.
based on your coverage level, multiply
it by the number of months in the If you enroll in the QHDHP mid-year and were not previously enrolled
year you qualify, then divide the in a QHDHP, you may contribute the entire year’s tax-free contribution
amount by 12. Your eligibility is based only if you are HSA-eligible before December 1 and remain enrolled
on your coverage status on the irst in the QHDHP for the following calendar year. If you enroll in the
day of the month. For example, if you
enrolled in the QHDHP Plan on April 1, QHDHP before December 1 but do not remain enrolled the following
your annual tax-free contribution limit calendar year, or if you enroll after December 1, you must pro-rate your
is as follows. HSA tax-free contribution based on the number of months you were
eligible to contribute.
Single Coverage
$3,450 × 9/12 = $2,587.50
Remember
Family Coverage For more information, please see IRS Publication 969, consult a tax
$6,850 × 9/12 = $5,137.50 advisor, or both. You are responsible for monitoring and adjusting your
contributions throughout the year to ensure compliance with federal laws
and limitations which apply to HSAs.
14 2018 New Hire Guide
