jcha21
New Member

State tax filing

Hi, I also have a question. My employer changed HSA custodians so there was a trustee to trustee transfer of my HSA which I know does not incur tax consequence since I dont need to report the transfer amount as a withdrawal from my HSA but my investments had to be liquidated in order for the transfer to be completed. Does this liquidation mean I have to report the amount as a capital gain on my California tax return? Thanks!