HSA rollover

Forum|Forum|3 years ago
January 31, 2023
2 replies
40 views

I have done an HSA rollover from one account to another and unable to reflect this using 2022 version of TurboTax desktop (if I enter the Gross Distribution from 1099-SA, my tax bill goes up because it does not take into account that a big chunk of that Distribution is a rollover into another HSA account

Form 8889 14b Distribution you rolled over to another HSA

Best answer by BillM223

In the HSA interview, when you enter the 1098-SA, at some point, you will be asked if you spent the whole distribution on medical expenses. Check "No, I didn't."

Two more lines appear. Check "I didn't spend any of it on medical expenses". Then one more line will appear, asking you to indicate the amount rolled over into another HSA.

The amount you enter here (presumably the amount in Box 1), will not appear in your income.

BillM223Answer

Level 15

In the HSA interview, when you enter the 1098-SA, at some point, you will be asked if you spent the whole distribution on medical expenses. Check "No, I didn't."

Two more lines appear. Check "I didn't spend any of it on medical expenses". Then one more line will appear, asking you to indicate the amount rolled over into another HSA.

The amount you enter here (presumably the amount in Box 1), will not appear in your income.

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anilcheriyan

Level 2

Note: I learnt this after research that a trustee to trustee direct transfer of an HSA is not considered a rollover.

Since assets are transferred directly from trustee to trustee, this is a non-reportable transfer, and there will be no tax forms to worry about. Don't include the amount transferred in income, deduct it as a contribution, or include it as a distribution when you file your taxes.