Once you are no longer enrolled in a qualified HDHP, you will stop being able to contribute additonal funds to your HSA. The maximum contribution to your HSA for that tax yeart would be determined by the number of months you were enrolled in the qualfied HDHP.
- To determine your pro-rated contribution amount, you would divide the full annual individual or family maximum contribution amount allowed for that tax year by 12 months You would then multiply the number of months you were enrolled in the qualified HDHP by the montly pro-rated maximum to determine you allowed maximum contribution for that tax year.
- For example: 2017 individual max $3,400 ÷ 12 months = $283.33 montly pro-rated maximum contribution. If you were enrolled in a qualified HDHP for 5 months your maximum contribution for that tax year would be 5 x $283.33 = $1,416.66.
REMEMBER: You can continue to use any remaining funds in your HSA to pay for qualified medical, dental or vision expenses tax-free even if you are not enrolled in a qualified HDHP.