I have accepted an offer from a different company that does not have the HSA style insurance plan. They only provide the PPO style insurance. Are there any negative tax implications if I max out my HSA contributions at my current company before i jump ship? This will let me save tax on full contributions. New TC: 240k
If you contributed more than allowed, you will be given the choice to retire the extra money or pay tax for the same, not a big deal
“Retire” the extra money?
Say that limit per year for single person is 3500, if you put 3700, you will have the choice to take out the extra 200 or, pay tax for those 200
When you deduct your HSA contributions on your taxes next year they'll ask if you were covered by an HDHP plan for the full year. If not, you'll only be allowed to put in the prorated amount by month. https://livelyme.com/hsa-contribution-limits-mid-year-changes/ Nice new grad TC btw. Why are you jumping ship so fast?
Thanks for the info. I went over the link. So if I contribute more than the prorated amount, do I need to withdraw the extra contributions, to not incur a penalty? My company does a one time lump sum contribution at the end of January every year. Do I need to return the prorated amount, if I leave in April ?
Not a new grad 😀. I wish I started with that new grad salary 😀.