Good points @Opus 17
UMB only credited you with $6333, and your W-2 says you contributed $6333, but CYC thinks you contributed $6500?
CYC transactions show $6499.xx
My next question is what happened on your paychecks? And box 1 of your W-2? Were you really out $166 in 2016?
The money was taken out of paycheck, so I am sure I did not receive a larger check.
I called CYC yet again, had a rather clear conversation. The customer rep, says $166 was withheld as pre-tax, therefore that amount, since it is valid HSA contribution, could be used now
1. For medical expenses and not be taxed
2. Could be used for HSA ineligible expenses, and then have to be as taxable income in 2019.
She recommended to go for #1 and have a medical expense receipt stapled to the letter for audit purposes.
She also said just like you and @dmertz said, to account and report $86 as additional income in 2019.
From her explanation, I am inferring that Box 1 of W-2 does not include $166. She was very clear that income tax was not withheld for $166 in 2016, because the money was "intended" as HSA contribution.
If the money was withheld from your paycheck, then I don't understand how box 12 from your employer matches the bank instead of CYC. I just can't wrap my head around how UMB and your employer have the right figure in box 12 if your employer withheld the money from all your checks.
CYC had the money $166 with them all these years, not accounted for. UMB reported what they actually received i.e. $6333.xx and my W2 Box 12 code W shows the same amount. I can ask my payroll whether they input value in Box 12 based on UMB input or whether they do their own calculation. From what it appears, it seems like they went with what UMB would've reported.
You don't have access to your final pay stub from 2016 do you? If your employer withheld the money from your check as planned, I would expect that your final pay stub of the year would show cumulative $6500 in contributions and be different from the W-2.
I do not but I asked my payroll if she can get those. Will update here.
