#032 – So How's Your HSA Look In The Middle Of The Year helps you to determine if you are short of dollars needed to cover an accident or sickness right now and the rest of the year, how you can fix that now and whether or not you need a new strategy for 2023.
Scott W. Dowling explains the calculation needed to figure out if you are short of HSA funds in the middle of the year. You may need to contribute to your HSA out of your own pocket now, he explains.
And, if your employer is contributing based on the number of payroll periods during the year, you may wish to rethink your strategy for 2023 so that you are 100% covered next year and every year thereafter.
Maximum Out of Pocket Cost – Current HSA Balance = (Deficit or Surplus)
A Surplus means that you have enough in your HSA to cover the Maximum that you have to pay for any and all health insurance claims you are responsible for in your health plan.
A Deficit means that you will be short of dollars needed to cover the Maximum Out Of Pocket costs that you are responsible for in your health plan. Further, you'll want to determine how much you will receive from your employer towards your HSA over the remaining pay periods of the year. If the combined total of Deficit + Remaining Employer Contribution is still less than the maximum you can contribute for the year, then you should contribute that amount immediately, using your personal savings, which can be deducted from your tax return next spring.
HSA Annual Contribution – (Deficit + Remaining Employer Contribution) = Amount You Should Contribute Now From Personal Funds