How do I record an HSA indirect rollover in TurboTax?

[PattiF · Accepted solution]

To enter the closing of an HSA at one location, and opening a new one at another, you will need to go to the HSA section in TurboTax. Search for HSA and use the Jump to HSA for this.

There is a follow-up question after you enter the information from your Form 1099-SA that will indicate that the distribution was rolled over into another Health Savings Account (HSA).

Start by going to the HSA section.  After you enter the information from your Form 1099-SA, there will be a question about whether you used the distribution for medical purposes.  Answer that question with No.  Next, choose whether you spent any of the money on medical expenses.  This will open a box to enter the amount that was rolled over.

To go directly to that section of your return, use these steps:

On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

This opens a box where you can type in “1099-SA” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

The search results will give you an option to “Jump to 1099-SA”

Click on the blue “Jump to 1099-SA” link

[mikenrita]

Okay. That got me there. Thanks.

I think it's a serious problem - I can't see the screen anymore but - the question from TurboTax is something like, 'did you spend any of your HSA money?' Well, I didn't. I rolled it all over. So I was clicking no there. You have to click yes in order to get guided to the section that lets you say you rolled it over.

I like most of TurboTax, but this section is very poorly designed. I got it entirely wrong last year and had to answer a CP2000 letter from the IRS, which I was easily able to prove I'd done the rollover. But it's entirely TurboTax's bad for wording this section so inappropriately.