HSA Eligibility Requirements 3

Question 1

Under the 'last-month rule,' an individual who becomes HDHP-eligible on December 1 may:

Accepted Answer

Contribute the full annual HSA limit as if they were eligible the entire year

Answer

The last-month rule allows an individual who is HSA-eligible on December 1 to contribute the full annual maximum, provided they remain HDHP-eligible through the testing period.

Question 2

The testing period for the last-month rule requires an individual to maintain HDHP eligibility through:

Accepted Answer

December 31 of the following year

Answer

The testing period runs through December 31 of the year following the year the last-month rule is applied; failing this requires income inclusion and a 10% penalty on the excess contribution.

Question 3

Preventive care services that may be covered before the deductible under a qualifying HDHP include which of the following?

Accepted Answer

Annual physical exams and routine immunizations

Answer

The IRS permits qualifying HDHPs to cover preventive care, such as annual physicals and routine immunizations, before the deductible without losing HDHP status.

Question 4

An individual loses HDHP coverage in October and does not regain it. For that tax year, the individual may contribute to their HSA:

Accepted Answer

Only for the months they were covered by an HDHP (January through October)

Answer

HSA contributions are prorated based on the number of months an individual was enrolled in a qualifying HDHP, so they may only contribute for January through October.

Question 5

An employee's domestic partner is covered under the employee's family HDHP. Which statement correctly describes the employee's HSA eligibility?

Accepted Answer

The employee remains eligible to contribute to their own HSA at the family limit

Answer

The employee's own HDHP eligibility is not affected by a domestic partner being covered under the same family plan; the employee can still contribute at the family limit.

HSA - Health Savings Account Certification Practice Test

HSA - Health Savings Account Certification Practice Test

HSA Eligibility Requirements 3