The HSA catch-up contribution limit is not reduced for the year in which the individual reaches age 55 if he or she reaches age 55 after Jan. 1. For example, an individual who is HSA-eligible for all of 2015 and who turns age 55 on Dec. 1, 2015, may make a full $1,000 catch-up contribution for 2015.
Declassification may also occur automatically by (1) occurrence of the date or event specified by the original classification authority, or (2) expiration of the maximum time frame for duration of classification established under E.O. 13526, usually 25 years from origination (see 5 FAM 485, below).
We call this process recharacterization. A recharacterization is also used to un-do a conversion from a Traditional IRA to Roth IRA or vice versa. You may recharacterize an IRA contribution or conversion made for the prior year until your filing deadline (including extensions, but no later than October 15). Once the October 15 deadline passes, a recharacterization for a prior year contribution or conversion cannot be processed. If you are not eligible and need to remove a contribution after the recharacterization deadline has passed, you may need to remove the contribution as an excess contribution.