HSA Eligibility when CSR Takes Deductible Below the Limits.

[G.Gordon]

$1300 is the IRS legal limit. Say a silver level HSA plan has a $2600 deductible before CSR, but is reduced to $850 with the CSR.

Can this person still have/open a HSA account?

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Found the answer. You can take the CSR and contribute to an HSA, but not if the modified plan is reduced below the IRS guidelines.

 

[Yagents]

I was going to say the same thing, thanks for the confirmation

 

[russelltw]

I would say that it likely doesn't matter due to lower income, but then I remembered a referral this week that had a buyout from his former company. His portion was north of 3 million dollars. Does not plan to work again, will be make about $20k on dividends on the one stock he will own (rest in mutual funds). He and his wife qualify for a plan that he can pay the annual premium with a $5 dollar bill. Oh well.

 

[G.Gordon]

Of course I'm wondering what the likelihood is for them to get caught. I've been on MSA/HSA eligible plans since their creation in the late 90's and have never been asked for proof that I have qualifying coverage, just the tax form from the bank that holds the HSA acct.

 

[HealthGuy]

Why would somebody who has all that money and retired put it all in mutual funds vs. an income producing secure annuity or another income producing vehicle with protection of principal? It amazes me how people blindly put all their eggs into one basket (mutual funds) and then retire, yet have the possibility of losing it in the stock market.