Proper reporting of QHSAFD?

Forum|Forum|7 months ago
January 26, 2026
5 replies
145 views

I joined a single HDHP on July 1 and am over age 55. Using the last month rule, my HSA contribution limit is $5300. I opened a private HSA because my employer doesn't offer a sponsored HSA even though they offer ab HDHP. I have a 403b from a former employer at TIAA. I rolled over $5000 from the 403b to a traditional IRA (also at TIAA), then rolled over $5003 from the IRA into the HSA as a QHSAFD. I then contributed an additional $297 out of pocket.

At tax time, I only have one 1099-R from TIAA in the amount of $5000 with code G. There is no 1099-R for the QHSAFD. When reporting HSA contributions, Turbotax asks about contributions but does not ask about rollovers. Line 10 of form 8889 is blank.

Did I screw up or Turbotax?

Best answer by dmertz

"There is no 1099-R for the QHSAFD."

Assuming that the HFD occurred in 2025, the IRA custodian has until January 31, 2026 to issue the required code-2 (or maybe code-1) Form 1099-R showing $5,003 in boxes 1 and 2a, box 2b Taxable amount not determined marked and the IRA/SEP/SIMPLE box marked.

If the IRS custodian is a bank, given that bank employees are notoriously undertrained regarding IRA transactions it's entirely possible that internally they mistakenly coded the transaction as an IRA transfer instead of as a distribution. If that's the case, they would fail to issue the required Form 1098-R and you would have to contact them to make the correction and issue the Form 1099-R. If they decline to issue the Form 1099-R, you would have to file a substitute Form 1099-R (Form 4852) which would preclude you from e-filing.

D

dmertzAnswer

Level 15

"There is no 1099-R for the QHSAFD."

Assuming that the HFD occurred in 2025, the IRA custodian has until January 31, 2026 to issue the required code-2 (or maybe code-1) Form 1099-R showing $5,003 in boxes 1 and 2a, box 2b Taxable amount not determined marked and the IRA/SEP/SIMPLE box marked.

If the IRS custodian is a bank, given that bank employees are notoriously undertrained regarding IRA transactions it's entirely possible that internally they mistakenly coded the transaction as an IRA transfer instead of as a distribution. If that's the case, they would fail to issue the required Form 1098-R and you would have to contact them to make the correction and issue the Form 1099-R. If they decline to issue the Form 1099-R, you would have to file a substitute Form 1099-R (Form 4852) which would preclude you from e-filing.

O

Opus 17

Author

Level 15

@dmertz wrote:

"There is no 1099-R for the QHSAFD."

Assuming that the HFD occurred in 2025, the IRA custodian has until January 31, 2026 to issue the required code-2 (or maybe code-1) Form 1099-R showing $5,003 in boxes 1 and 2a, box 2b Taxable amount not determined marked and the IRA/SEP/SIMPLE box marked.

If the IRS custodian is a bank, given that bank employees are notoriously undertrained regarding IRA transactions it's entirely possible that internally they mistakenly coded the transaction as an IRA transfer instead of as a distribution. If that's the case, they would fail to issue the required Form 1098-R and you would have to contact them to make the correction and issue the Form 1099-R. If they decline to issue the Form 1099-R, you would have to file a substitute Form 1099-R (Form 4852) which would preclude you from e-filing.

The custodian is TIAA, a huge provider of retirement accounts mainly for education and non-profit employers (hence the 403b); I would be stunned if they don't know they must issue a 1099 for the HFD. They sent me a notice that 1099-Rs were ready and there is only one on file. Hmmm.