2021 HSA rollover

[melissaforpeace315]

Hi all! In 2021 , I completed an HSA rollover from my old employer's HSA to my new employer's HSA.  I checked my old employer's HSA account (web portal) right now and can only see the 5498-SA , and no other document.  I opened the 5498-SA (from my old employer's HSA), and in Box 2, it states: "Total Contributions made in 2021", and doesn't state anything about the fact that I had rolled over an amount to my new employer's HSA.  There are no other documents in the web portal of my old employer's HSA that support that I have rolled over an amount to my new employer's HSA.  Should there have been a separate document that shows that I had rolled over a lump sum to my new employer's HSA? 

Was I supposed to receive a 1099-SA from my old employer's HSA account?  .... or how else do I indicate to TurboTax / the IRS, that there was a 2021 HSA rollover, and NOT a distribution?  

I really appreciate any help you can provide!

[JillS56]

Assuming funds were transferred from trustee to trustee, your old employer did not put any new money into your HSA in 2021, you would not receive Form 8889 from the old employer.  You would not receive a Form 8889 from your new employer unless they added funds to your account in 2021.   The rollover funds would not count as a contribution.    The rollover would not be a distribution so you would not receive the Form 1099-SA. 

One way to figure out if the rollover occurred is what does the 5498-SA for your new employer show as the value of your HSA for 2021.   Or check your HSA account for your new employer.   It should show the rollover in the balance.

[dmertz]

There is no reporting because this was not a distribution and not a rollover.  It was a nonreportable trustee-to-trustee transfer.

[melissaforpeace315]

@JillS56 @dmertz thank you both for your answers!  I was wondering if the following information is not considered correct? I was reading it from a previous response, and just wanted to make sure because my old HSA trustee said that I for sure am not getting a 1099-SA for 2021 tax year for the rollover that happened. Yet the answer below says something different.

"A rollover from one HSA to another is shown by form 1099-SA. However, since there is no code for rollover on form 1099-SA (unlike on a 1099-R), you have to take an extra step to tell TurboTax that this 1099-SA is in fact a rollover.

• Enter the 1099-SA as usual. 
• On the subsequent screen where you are asked if the distribution was for qualified medical expenses, answer “No”. Two new lines will appear.
• Whether you answer that you spent part of the distribution or none of the distribution on qualified medical expenses, you will see a new line appear: “Amount rolled over into another HSA or MSA”.
• Enter the rollover amount here. The amount rolled over will not be treated as taxable income."

[dmertz]

The information that you quoted does not apply.  You did not do a rollover.

[melissaforpeace315]

@dmertz sorry i don't mean to be dumb.  What's the difference between an HSA "rollover" vs. an HSA "trustee-to-trustee" transfer?  I thought they are the same thing?

[dmertz]

A trustee-to-trustee transfer moves the funds from one HSA to another without the funds ever coming under your direct control; the funds do not pass through your hands or through any of your non-HSA accounts.  With a distribution and rollover, the funds are paid to you which you yourself then pay to the receiving HSA with 60 days of the date when the funds were paid to you.

Distributions and rollover are subject to the one-rollover-per-12-months limitation.  This limitation is intended to limit your ability to take the equivalent of a short-term loan from an HSA.  There is no such limitation on trustee-to-trustee transfers since moving the money in this way gives you no opportunity to temporarily use the money for something else.