HSA from prior years

[georgepbenz]

Several years ago, I established an HSA account through Optum when I was on a High Deductible plan. I did not spend all the money, and still have a balance remaining in that old HSA account. I used some funds from this account to pay for medical services this past year (2023), and a 1099-SA was generated for me.

How do I explain my HSA status - when the question asks whether I was employed and enrolled in a High Deductible plan, the answer is confusing. I WAS at the time that the HSA was funded, but now I am using the money in a later time under different circumstances.  HELP!

[BillM223]

When you enter TurboTax, go to the HSA interview: Deductions and Credits->Medical->1099-SA, HSA, MSA.

On the entry screen, click that you have an HSA. Go through your HSA interview (entering your 1099-SA). When you get to the question "Was [name] covered by a High Deductible Health Plan (HDHP) in 2023?", check "No, I did not have coverage."

Then eventually you will see "What type of High Deductible Health Plan (HDHP) did [name] have on December 1, 2022?". If you were already out from under the HDHP by the end of 2022, then answer NONE. 

Then everything will seem swell, until you get a block in the Review at the end of your return. TurboTax will ask you whether to put Self or Family on line 1 of the 8889, because it assumes that since you were in the HSA section, you must have had HDHP coverage, but you haven't checked either one. Don't worry about it, you have already told TurboTax that you did not have HDHP coverage so any calculations are correct. Just put Self  - this will not change anything, but it will get you past the Review.