Can individuals who enroll later in the year contribute up to the full annual limit?
Individuals who become covered by an HDHP after January are allowed to contribute up to the full annual limit, even if they were only eligible for a portion of the calendar year. However, an individual must be covered in an HDHP in December of that year, and remain covered in an HDHP through December of the next year. Example: Bob (under age 55) is enrolled from July 1, 2007 through December 31, 2007 in an HDHP. He has individual coverage with a $3,000 deductible and remains eligible through December 31, 2008. Bob’s annual contribution amount for 2007 is $2,850.
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