No, you can enter that 1099-SA as is. You just need to go one more step.
To report a trustee-to-trustee rollover, please do the following.
- Do a Search (upper right) for hsa and click on the jump-to link (Mac users must find HSA in the Topic List). NOTE: just type in hsa and hit Enter - ignore any of the suggested search terms.
- Click the box (if it is not checked already) that you have an HSA.
- The next screen should be "Did you use your Health Savings Account (HSA) to pay for anything in 2021? Answer YES.
- On the next screen, click on Add a 1099-SA if necessary.
- On the next screen, enter the Payer information.
- On the next screen, confirm your personal information.
- On the next screen, enter the amounts from the various boxes on your 1099-SA. There should be a dollar amount in box 1 and a distribution code of "1" in box 3.
- On the next screen, to the question, "Did you spend your HSA money on medical expenses only?", answer NO, I didn't.
- Two new lines will be exposed. Check the one that reads, "I didn't spend any of it on medical expenses."
- One more new line will be exposed: "Amount rolled over into another HSA or MSA". Enter the amount of the rollover here. This will appear on line 14b on form 8889.
You're done.
[Edited 1/31/2022 4:52 PM - updated year to 2021]
@bculberson
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