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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

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Health Savings Account deduction for 2005

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: I started a HSA plan two months ago and read that I can make the contribution for the maximum deduction for 2005 until the April 15, 2006 tax filing deadline?

A: Yes, that is true but only if the qualifying high deductible health insurance was in place and no other disqualifying health insurance was in force during 2005. Otherwise, the HSA deduction is calculated only for the number of months the insurance was actually in force. In your case, if the insurance started December 31, 2005, then you are eligible for 1/12 of the maximum HSA deduction for 2005. So if your family health insurance policy deductible is $5000, then the maximum first year deduction for 2005 is 1/12 X 5000 = $417. The maximum 2006 deduction is $5000, so you could make the total $5,417 contribution to your HSA now and deduct it over the two years. This tax calculation is a simplification of Terms of Service for discussion purposes. A more complete description can be found in the "Frequently Asked Questions" section of


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