TT asks what my Traditional IRA total (balance in all accounts) is. What about HSA 5498SA

[Nan2C]

I have no activity in my HSA for years. IN OR OUT

My Question:

is the 5498 SA total on the HSA fair market value Dec 31 2021 supposed to be included in my

IRA Traditional total $. (within Turbo Tax)

Does that total information get sent on to IRS via Turbo Tax in addition to the 5498's of all kinds?

[BillM223 · Accepted solution]

Please don't mix the HSA and the IRA. While they have some similarities, their numbers don't mix.

"TT asks what my Traditional IRA total (balance in all accounts) is."

This question is asked of both, however, but ONLY when there is a carryover penalty from excess contributions (there may be another case, but carryover of excess contributions is the most common). TurboTax asks this because (at least for the HSA, but I think the IRA is the same way) your penalty for the carryover is 6% of the smaller of either the amount of the carryover OR the balance in your account. So, if the balance is zero, then the penalty is zero, because 6% of zero is zero.

Otherwise, the IRS does not care about the balance in either your IRA or your HSA. So don't worry about this. Most years, neither balance is sent to the IRS (on your tax return anyway - no telling about what reports the HSA custodian or IRA administrator might file with the IRS).

[Nan2C]

Thank you Bill! Just e filed and feel like with that question answered I did 100% good job!