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Level 1

Do the recorded on the forms 5498SA affect the total allowable IRA contribution amounts?

"We are (married, filing Jointly), and in an effort to reduce tax, we are considering the purchase of 2 IRAs for a total of $13,000. We both recieved forms 5498-SA. Do the amounts recorded on the forms 5498SA affect the total allowable IRA contribution amounts?"

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Accepted Solutions
Level 18

Do the recorded on the forms 5498SA affect the total allowable IRA contribution amounts?

Yes, both HSA contributions through your employer and directly to your HSA reduce your AGI and your MAGI.

Your MAGI (which determines your deductible IRA contribution limit) is determined by:

An individual's adjusted gross income  without taking into account any of the following amounts.

  • IRA deduction.
  • Student loan interest deduction.
  • Tuition and fees deduction.
  • Domestic production activities deduction.
  • Foreign earned income exclusion.
  • Foreign housing exclusion or deduction.
  • Exclusion of qualified savings bond interest shown on Form 8815.
  • Exclusion of employer-provided adoption benefits shown on Form 8839.
Note that neither type of HSA contribution appears here, so once the HSA information has been entered into TurboTax, you can apply the items above (if any) to add back to your AGI to determine your MAGI.

View solution in original post

1 Reply
Level 18

Do the recorded on the forms 5498SA affect the total allowable IRA contribution amounts?

Yes, both HSA contributions through your employer and directly to your HSA reduce your AGI and your MAGI.

Your MAGI (which determines your deductible IRA contribution limit) is determined by:

An individual's adjusted gross income  without taking into account any of the following amounts.

  • IRA deduction.
  • Student loan interest deduction.
  • Tuition and fees deduction.
  • Domestic production activities deduction.
  • Foreign earned income exclusion.
  • Foreign housing exclusion or deduction.
  • Exclusion of qualified savings bond interest shown on Form 8815.
  • Exclusion of employer-provided adoption benefits shown on Form 8839.
Note that neither type of HSA contribution appears here, so once the HSA information has been entered into TurboTax, you can apply the items above (if any) to add back to your AGI to determine your MAGI.

View solution in original post