I retired prior to Jan 2023. Therefore I do not receive a W2 from my previous employer. However, that employer continued to make contributions to my HSA in 2023; I received form 5498 showing the employer's contributions. The amount contributed on form 5498 equals the amount distributed on the 1099-SA. I was not on medicare and was covered by the employer's High Deductible Insurance Plan for the entire year. When I enter the 1099-SA and check YES, I spent the distribution only on medical costs, it still increases my Federal Tax Due by 22% of the distributed amount. From everything I've read and been told by a TT accountant, I should not be taxed on this distribution. I cannot find anywhere in TT to enter Employer HSA Contributions when you do not receive a W2 from the Employer. Please advise.
