I switched jobs and my new employer doesn't have an HDHP (High Deductible Health Plan). Can I still contribute to my HSA?

Assuming you signed-up for a non-HSA eligible plan with your new employer, your contributions will be limited based on a formula. Essentially you can only contribute a pro-rated amount of the annual maximum limit.

Here's the formula:

  • Take the annual maximum contribution amount (in 2020 it's $3,550 for individual & $7,100 for family)
  • Divide it by 12.
  • Multiply that amount by the number of months you maintained HDHP coverage.
  • That will be what you are allowed to contribute.

The same formula works for any catch-up contributions (catch-up contribution amount divided by 12, multiplied by # of months of HDHP coverage).

Source: IRS notice 2004-2 Q&A 2 through Q&A 7

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