so this means that 12d. - W - includes both employer and employee payroll contributions, say employer contributes $100, and you contribute $900. So this would have it as $1000 on W-2, and no matter what the number is here if you meet distribution condition - no federal tax for any portion of it, but California will tax you on entire amount of what you put in and and what employer gifted you? so in the end HSA is federal tax free, but California will still tax everything, since they didn't tax you on monthly payroll deductions presumably, right?
