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cesium62
Returning Member

HSA interview is chock full of bugs

Why is the HSA interview so buggy?

 

My employer contributed $8200 to my HSA.  I'm over 55.  The IRS says the 2021 limit is $7200 + $1000.  Turbotax says I'm $1000 over the limit.  That's bug number one.

 

When I go to forms to look at 5329-T, it's mostly empty except for the line that says I'm $1,000 over the limit.  No explanation at all as to why TT thinks I'm $1,000 over the limit.  That's bug number two.

 

When I review questions about HSA, seems like a lot of people have a lot of different problems with this section which makes me think it's just buggy in general.

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1 Reply
RaifH
Expert Alumni

HSA interview is chock full of bugs

Yes, if your employer contributed $8,200 and you were over 55 on December 31, 2021 with a family plan, you should have no over-contribution. This is true as long as you had HDHP coverage every month of the year, never had Medicare in 2021, and did not have an over-contribution from a prior year. 

 

Form 5329 is solely used to calculate the penalty on the over-contribution. The calculation to determine your allowable and actual HSA contributions can be found on Form 8889.

 

When you are reporting your contributions for the year, your contributions from your employer are pre-tax dollars and reported on your W-2 in Box 12 with Code W. If you made any paycheck deferrals, that amount is also included in the Box 12 amount. You only use the Any contributions you personally made field if you contributed out-of-pocket to your HSA. If your current year contributions look good and it is still saying you have an over-contribution, this may be due to a prior year. A prior year overcontribution would be on Form 5329 Line 42.

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