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hughes_jared
New Member

TurboTax says I have excess HSA contributions. Should a contribution made in March 2020 but designated for 2019, count toward the 2020 max contribution limit?

I assumed not, so I fully funded my 2020 HSA in addition to the contribution in question.
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dmertz
Level 15

TurboTax says I have excess HSA contributions. Should a contribution made in March 2020 but designated for 2019, count toward the 2020 max contribution limit?

Forms 5498-SA are indeed confusing.  To be able to determine how much was contributed for a particular year you have to look several  Forms 5498-SA.

 

The box for contributions made in 2020 means just that, any amount deposited in 2020, either for 2020 or for 2019.  You have to look at your 2019 Form 5498-SA to see how much to the deposit made in 2020 that was for 2019.

 

If you are trying to determine how much was contributed for 2020, add together boxes 2 and box 3 of your 2020 Form 5498-SA and subtract box 3 of your 2019 Form 5498-SA.

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4 Replies
dmertz
Level 15

TurboTax says I have excess HSA contributions. Should a contribution made in March 2020 but designated for 2019, count toward the 2020 max contribution limit?

If this contribution was made through your employer and appears with code W in box 12 of your W-2, on the did your employer tell you about any other contributions page, answer Yes, then enter the amount in the first box labeled Employer and payroll contributions made in 2020 for tax year 2019.  This amount should have been reported on your 2019 Form 8889 in a similar fashion by entering the amount in the second box and that same page in 2019 TurboTax.

 

If this was instead a personal contribution for 2019 not made through your employer, this should have been entered into 2019 TurboTax and not in 2020 TurboTax.

hughes_jared
New Member

TurboTax says I have excess HSA contributions. Should a contribution made in March 2020 but designated for 2019, count toward the 2020 max contribution limit?

@dmertz This was a personal contribution (my employer does not contribute to my HSA), and I did include that contribution in my 2019 TurboTax return. My confusion is due to my 2020 5498-SA form, which includes this contribution in box 2's "Total contributions made in 2020". I did not expect that payment to be included here because it was designated for 2019. However, the IRS instructions for the form say it should be included: https://www.irs.gov/pub/irs-prior/i1099sa--2020.pdf. Should I simply subtract that payment from box 2's figure when prompted by TurboTax for my total 2020 contributions?

dmertz
Level 15

TurboTax says I have excess HSA contributions. Should a contribution made in March 2020 but designated for 2019, count toward the 2020 max contribution limit?

Forms 5498-SA are indeed confusing.  To be able to determine how much was contributed for a particular year you have to look several  Forms 5498-SA.

 

The box for contributions made in 2020 means just that, any amount deposited in 2020, either for 2020 or for 2019.  You have to look at your 2019 Form 5498-SA to see how much to the deposit made in 2020 that was for 2019.

 

If you are trying to determine how much was contributed for 2020, add together boxes 2 and box 3 of your 2020 Form 5498-SA and subtract box 3 of your 2019 Form 5498-SA.

View solution in original post

hughes_jared
New Member

TurboTax says I have excess HSA contributions. Should a contribution made in March 2020 but designated for 2019, count toward the 2020 max contribution limit?

@dmertz Thank you for your answer...it makes perfect sense. It would really be great if TurboTax included that guidance in their instructions!

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