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Level 1

Should "Year end HSA value" include investments?

Let's say that at the end of the tax year, my HSA account had a cash balance of $2000 and an investment balance of $10000. Form 5498-SA has a value of $2000 in box 5. In form 5329-T, should I put $2000 or $12000?
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Level 13

Should "Year end HSA value" include investments?

The reason for this question is to determine if you should be assessed on excess tax of 6% on your excess contribution or on your HSA value (you get assessed on the smaller of the two).

It would make no sense to report only the cash value here.

I see in the literature that some companies might split the cash and the investments into two accounts, hence two 5498-SAs.

But I see that one tax professional who asked his HSA plan advisor about this suddenly received a corrected 5498-SA reporting the total amount on the corrected version.

So, use the actual value (cash and non-cash) when asked in TurboTax, and also call your HSA plan administrator and ask them why they are not reporting the fair market value of the whole HSA.

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Highlighted
Level 13

Should "Year end HSA value" include investments?

The reason for this question is to determine if you should be assessed on excess tax of 6% on your excess contribution or on your HSA value (you get assessed on the smaller of the two).

It would make no sense to report only the cash value here.

I see in the literature that some companies might split the cash and the investments into two accounts, hence two 5498-SAs.

But I see that one tax professional who asked his HSA plan advisor about this suddenly received a corrected 5498-SA reporting the total amount on the corrected version.

So, use the actual value (cash and non-cash) when asked in TurboTax, and also call your HSA plan administrator and ask them why they are not reporting the fair market value of the whole HSA.

View solution in original post

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