Employer contributed $3350 to my HSA 4/1//17 for 2016.I will pre-tax $4400 today. Box 12 of 2017 W-2 will show $7,750 and I only have single coverage. Is that a problem?

[gaylet78]

The Form 8889 will only report the $4,400 I am contributing pre-tax thru the 125 Plan (the employer contribution made 4/1/17 was reported on 2016 Form 8889), but I am concerned that Box 12 of the W-2 will show an amount in excess of the limit and trigger a problem.  Or, is Box 12 just informational and the IRS doesn't pay attention to it?

[dmertz · Accepted solution]

Your 2017 Form W-2 showing $7,750 in box 12 is not a problem.  When entering this into 2017 TurboTax, TurboTax will ask if any of the amount is for the prior year.  When going through the HSA section of TurboTax, answer Yes when TurboTax asks if your employer told you about any other contributions.  Indicate that your employer told you that $3,350 was a contribution made in 2017 for 2016.

Similarly, the $3,350 should have been reported on your 2016 Form 8889 as an employer contribution.  This would have been done by indicating to this same question in 2016 TurboTax your employer made a contributions of $3,350 in 2017 for 2016.

(Note that any amount that you personally deposit in the HSA rather than being deposited through your employer will not appear as part of the amount reported with code W in box 12 of your W-2.)

[gaylet78]

dmertz - Thank you.  This is what I thought was the case, but I just wanted to make sure. I just wanted to make sure Box 12 wouldn't be a red flag.

[dmertz]

Your filed 2017 Form 8889 will show only the $4,400 contributed for 2017.  The $3,350 is subtracted out on TurboTax's Form 8889 Line 9 Employer Contributions Smart Worksheet.

[Critter]

Box 12 should only reflect the contributions made for the Tax year 2017... The 2016 contribution should have been on the 2016 W-2 or corrected W-2. 

[gaylet78]

Critter#2 - thank you for your response; however I believe it is inaccurate.  The W-2 is reported on a cash basis, regardless of what year the contribution applies to.  When submitting the money to the HSA custodian, the year must be identified (current year or prior year), and the HSA custodian issues a Form 5498-SA that indicates the contributions made after the end of the year that apply to the prior year.