My wife used her HSA to pay covered expenses on 2016, alher HSA was created before 2010 and she was not enrolled in a HDHP in 2016. How do I process this 1099-SA form?

[betoangulo]

Turbo Tax is asking me about the months enrolled in a HDHP in 2016, when my wife was not enrolled in a HDHP in 2016. She just used her HSA to pay for medical expenses in 2016. She had balance in her HSA from previous years. Let me know how to process this information on my 2016 tax return.Thank you.

[reins]

we have HSA balance from 2014 when we had a HDHP.  we paid medical expenses in 2018 with our HSA balance even though we have not had HDHP since 2014. we have 1099SA showing #1 distribution. how do we answer questions about having an HDHP plan when entering 1099sa info?

[BMcCalpin · Accepted solution]

As you probably know, even after you lose the eligibility to contribute to your HSA (no HDHP or conflicting coverage like Medicare), you can still take distributions from the HSA until the HSA is exhausted.

That is, your HSA is independent of the HDHP.

In the HSA interview, show that she has an HSA (she still does) and enter the 1099-SA information.

You will answer that she was not in an HDHP for any month in the current tax year.

Since she did not make any contributions in the current tax year, she won't have any excess contributions.

The form 8889 reporting on her HSA activities will be completed and added to the return.

[Edited 3/17/2020 4:33 pm CDT - made year neutral]