Hello,

I have a client, Kathy who is 59, that has been on a Family health insurance plan through her employer with her husband Kelly. Kelly was eligible for Medicare starting July 1st and will be switching off of Kathy’s plan at the end of June. Beginning July 1st Kathy will no longer be considered to have a Family plan and now is covered under an Individual plan. She is looking to max out her H.S.A. contributions in 2020 and I’ve read contributions can be pro-rated if you incur a mid-year status change. Because Kathy will have been covered under the family plan and individual plan for 6 months each by the end of this year, under the pro-rated theory she is eligible to contribute $6,325 (50% x $8100 + 50% x $4,550) this year. Has anyone helped a client with this before or heard that this is allowed? Does the timing of the contributions matter under these circumstances?

Thank you