I am retired. City retirement plan made HSA contribution, on a pre tax basis, and reported it on a separate 1099-R form, with a distribution code of G. How do I do this?

[Donfop]

I have tried multiple methods of entering this HSA contribution made in 2021, on my behalf, directly from/by my municipal government retirement system. I can't get TT to confirm and show the contribution amount  at the end of the section summary/recap.

[BillM223]

I am not sure that the IRS anticipated such a contribution when HSAs were placed into action in 2004, but we can approximate what to do.

In the 1099-R interview, don't enter anything about an HSA in this dialogue (but since it's a pension instead of an IRA, it probably won't ask).

In the HSA interview, proceed through the input screens until you see "Did [name] put money into an HSA in 2021?"

Skip the next screen that says "Let's enter [name]'s HSA contributions".

On the next screen where it asks "Did your employer tell you about any other contributions?", answer YES, and three new lines will appear.

On the last line ("Employer and payroll contributions not reported in Box 12 of your W-2"), enter the amount from the 1099-R.

This will cause the pre-tax HSA contribution to be handled correctly, even if it looks odd.

Write a note to yourself on why you did this and stick it in your tax files.

[dmertz]

A code-G Form 1099-R cannot have anything to do with an HSA.  Code G means can only be used to report the movement of money between retirement accounts.

If money was moved from your employer plan to an HSA, it's a taxable distribution paid to you from the employer plan, reportable with code 1, 2 or 7, and a separate deductible contribution to the HSA made by you.  In this case the employer plan would need to correct the code on the Form 1099-R.

An HSA Funding Distribution (HFD) is only permitted to be made from an IRA, not from an employer plan that is not an IRA.  I can't imagine that the city plan is a traditional IRA, but if this was, an HSA funding distribution would be reported with code 1 (or maybe code 2) or code 7 depending on your age.