Rule Atlas
COBRA: Health Insurance & Medicare: A CFP® Pro's Guide to Client Protection
Under COBRA (CFP Board / IRS / SEC), health Insurance & Medicare: A CFP® Pro's Guide to Client Protection establishes the authoritative rules tested on the CFP® Certification. A comprehensive guide to health insurance, tax-advantaged savings accounts (HSA, FSA, HRA), and Medicare. VoraPrep verifies every threshold, worked table, and practice question below against the current CFP® Certification blueprint.
The Alphabet Soup of Health Savings: HSA vs. FSA vs. HRA
| Feature | Health Savings Account (HSA) | Flexible Spending Arrangement (FSA) | Health Reimbursement Arrangement (HRA) |
|---|---|---|---|
| Eligibility | Must be enrolled in a High-Deductible Health Plan (HDHP). | Offered by an employer. Cannot have an HSA (unless it's a limited-purpose FSA). | Offered by an employer. Can sometimes be paired with other plans. |
| Ownership | Owned by the individual. Portable (goes with you if you change jobs). | Owned by the employer. Not portable. | Owned by the employer. Not portable. |
| Contributions | Employee and/or employer. Subject to annual limits. | Employee (via payroll deduction) and/or employer. | Employer-funded ONLY. |
| Rollover | Funds roll over year after year. No 'use-it-or-lose-it' rule. | Generally, 'use-it-or-lose-it,' though employers may offer a grace period or small carryover. | Employer determines if funds roll over. |
| Tax Treatment | Triple-Tax-Advantaged: Contributions are pre-tax, growth is tax-deferred, and qualified withdrawals are tax-free. | Double-Tax-Advantaged: Contributions are pre-tax and qualified withdrawals are tax-free. | Reimbursements are tax-free to the employee. |
Kenji, age 48 and single, is covered by a qualifying High-Deductible Health Plan (HDHP) with self-only coverage for all of 2026. His employer also offers a general-purpose Health Flexible Spending Account (FSA). Kenji was enrolled in the FSA from January 1, 2026, through April 30, 2026. He disenrolled from the FSA effective May 1, 2026, and had no other disqualifying health coverage for the remainder of the year. What is the maximum amount Kenji can contribute to his Health Savings Account (HSA) for 2026?
Worked Example: Calculating the Maximum HSA Contribution
Scenario: Amelia, age 58, and her husband, Ben, age 61, are covered under a family High-Deductible Health Plan (HDHP) that meets the 2026 statutory requirements. They want to contribute the maximum possible amount to their HSAs for the year.
- Here is the step-by-step calculation:
- 1. Identify the Base Contribution Limit: For 2026, the maximum contribution for a family HDHP is $8,750. 2. Identify Applicable Catch-Up Contributions: An additional catch-up contribution of $1,000 is allowed for individuals age 55 or older. Both Amelia (58) and Ben (61) qualify. 3. Apply the Catch-Up Rule: The catch-up contributions are individual. Amelia can contribute her $1,000 catch-up to her HSA, and Ben can contribute his $1,000 catch-up to his own HSA. The family limit of $8,750 can be allocated between their accounts in any way they choose. 4. Calculate the Total Maximum Contribution: The total they can contribute across their accounts is the sum of the family limit and each of their individual catch-up contributions.
- Total Max Contribution = Family Limit + Amelia's Catch-Up + Ben's Catch-Up Total Max Contribution = $8,750 + $1,000 + $1,000 = $10,750
- Therefore, the total maximum they can contribute across their HSAs for 2026 is $10,750.
Common CFP® Certification Distractors on COBRA
- 1To keep the parts of Medicare straight on exam day, use this simple mnemonic:
- 2A is for Admission (hospital stays).
- 3B is for Bills (doctor bills and outpatient services).
- 4C is for Choice (the choice to select a private, bundled plan).
- 5D is for Drugs (prescription drugs).
Frequently Asked Questions: COBRA
What is the core rule under COBRA (Health Insurance & Medicare: A CFP® Pro's Guide to Client Protection)?
Under COBRA (CFP Board / IRS / SEC), health Insurance & Medicare: A CFP® Pro's Guide to Client Protection establishes the authoritative rules tested on the CFP® Certification. A comprehensive guide to health insurance, tax-advantaged savings accounts (HSA, FSA, HRA), and Medicare. VoraPrep verifies every threshold, worked table, and practice question below against the current CFP® Certification blueprint.
How is COBRA tested on the CFP® Certification?
To keep the parts of Medicare straight on exam day, use this simple mnemonic: A is for Admission (hospital stays).
Where can I practice CFP® Certification questions on Health Insurance & Medicare: A CFP® Pro's Guide to Client Protection?
Test yourself instantly with the free playable CFP® Certification question on this page, or launch VoraPrep's full CFP® Certification adaptive question bank, interactive lessons, and 1:1 exam simulator at voraprep.com/cfp.