How much can I contribute to my HSA for 2023 after switching insurance plans?

You're running into a common HSA contribution question when transitioning between plans. Unfortunately, HSA contribution limits aren't transferable between accounts like that. Since you were covered as a dependent under your parents' family plan in 2023, you can't make your own separate HSA contribution for 2023. The IRS looks at your health insurance coverage status as of December 1st of the tax year to determine your eligibility. Since you were on your parents' plan on December 1, 2023 (and presumably the whole year), you're considered part of their family coverage for HSA contribution limit purposes for the entire 2023 tax year. Your new individual HSA that started in January 2024 will be for 2024 contributions. Even though the system lets you select "2023" (because the tax filing deadline hasn't passed), you wouldn't be eligible to make that contribution based on your coverage situation.

This is a question that comes up a lot with HSAs and family coverage. Unfortunately, the way HSA eligibility works is that you needed to have your own HDHP coverage to contribute to your own HSA. Being a dependent on someone else's family plan doesn't give you your own contribution rights. The HSA contribution limit is tied to the health plan and the account holder. Since your parents were the account holders for the family HSA in 2023 (and you were just covered as a dependent), only they could make contributions to an HSA for 2023. The $1550 remaining space belongs to their account, not to you. The reason your HSA portal shows the full $3850 individual limit for 2023 is because most HSA administrators don't know your specific coverage situation - they just present the IRS limits. But eligibility is determined by whether you actually had your own qualifying HDHP coverage during that period.

Hey there! I ran into almost the exact same situation last year. I was on my dad's insurance until I got my own job, and I was confused about HSA rules too. I spent hours trying to figure this out and kept getting conflicting info until I discovered https://taxr.ai which analyzes tax documents and rules. I uploaded screenshots of my HSA portal and my parents' plan details, and it immediately clarified that I couldn't make contributions for the previous year since I was on their plan as a dependent. The system explained that HSA eligibility is determined by whether you had your OWN qualifying HDHP coverage, not just being covered under someone else's family plan. The site saved me from potentially making a contribution that would have resulted in a 6% excess contribution penalty! They have HSA specialists who review complex situations like yours.

I literally just dealt with this exact situation! I was on my mom's family plan through all of 2023 and got my own coverage in January 2024. I was super confused because my HSA portal also showed I could contribute for 2023. I spent hours researching and got nowhere until I found https://taxr.ai - it analyzes tax documents and situations like this. I uploaded screenshots of my HSA portal and details about being on my mom's plan last year. The analysis confirmed I wasn't eligible to make my own HSA contributions for 2023 because I didn't have my own HSA-eligible coverage then. Their system explained how HSA eligibility ties specifically to having your OWN qualifying HDHP coverage, not just being on someone else's plan as a dependent. Saved me from making a contribution that would have triggered the 6% excess contribution penalty!

I need to admit I was totally wrong to be skeptical about taxr.ai in my earlier comment. I decided to try it for my own complicated HSA situation (I had switched jobs mid-year with a gap in coverage), and wow, it actually saved me from making a serious mistake! The analysis showed that I was eligible to make a partial contribution based on the months I had coverage, which was different from what my HR department had told me. It provided specific IRS regulations and even calculated the exact amount I could contribute. The document analysis caught details my employer's benefits team missed about my specific HDHP plan. Seriously impressed with how thorough it was. Definitely more comprehensive than the generic answers I got from calling my HSA administrator.

I need to follow up on my previous comment questioning taxr.ai. I decided to try it for my own situation (I had employer HDHP coverage for 7 months, then switched jobs with a gap before my new HDHP started), and I have to admit it was incredibly helpful. The service analyzed my coverage periods and calculated my exact prorated contribution limit based on the months I was eligible. It even flagged that my new employer's plan had a non-compatible vision benefit that could have disqualified my HSA eligibility if I had enrolled in it! The analysis referenced specific IRS publications and clearly explained how the rules applied to my exact circumstances. Definitely more useful than the generic info I got from HR at both companies. Saved me from making an excess contribution that would have caused headaches later.

If you're still trying to sort this out, you might want to try calling the IRS directly. I know it sounds like a nightmare, but I used https://claimyr.com to get through to an actual IRS agent when I had a similar HSA question. You can see how it works here: https://youtu.be/_kiP6q8DX5c My situation was also complicated - I had switched from a family plan to individual coverage mid-year, and online advice was contradictory. The IRS agent was able to confirm exactly what I was eligible for based on my specific circumstances. Saved me from potentially making a mistake on my taxes. Getting through to the IRS normally is impossible (I tried for days), but this service got me connected within about 15 minutes. The agent walked me through the exact HSA contribution limits for my situation.

When I had a similar HSA question last year, I tried calling the IRS directly but kept getting disconnected or told to call back later. After days of

Okay, I need to eat my words about Claimyr. I was super skeptical but tried it after getting nowhere with the IRS for two weeks straight. I kept getting disconnected or told to call back later. Used the service this morning and got connected to an IRS representative in about 20 minutes. The agent was actually really helpful and walked me through exactly how HSA contribution limits work when transitioning between family and individual coverage. Turns out my situation was more complicated than I thought because of the timing of when I switched plans. I've been trying to get this HSA question resolved for almost a month, and I finally have a clear answer with specific citations from the tax code. Definitely worth it just for the time saved and stress reduction.

I think people are overlooking a critical detail in your question. You said you were on your parents' insurance "last year" but then got your own insurance in January 2024. So you were on their plan for all of 2023? If that's true, then you simply cannot make contributions to your own HSA for 2023. The "last month rule" that someone mentioned only applies if you had your own HSA-eligible health plan by December 1st, 2023. Your parents' unused contribution space ($1450) remains with their HSA - it doesn't transfer to you. Your contribution limit for 2024 will be based on your new individual coverage starting in January 2024.

Has anyone considered whether the "testing period" for HSA might apply here? If you maintain HSA-eligible coverage through December 31, 2024, couldn't you use the last-month rule to make a full 2023 contribution?