S corp 2% shareholder - can HSA account be in spouse's name

[MelissaT875]

My husband is sole owner and >2% shareholder. We have a family HDHP. I have an HSA account already established, but my husband does not. HSA contributions are being accounted for correctly - included as taxable income on my husband's W2. My question is -

Does it matter that the actual contributions are deposited into an HSA account that is in my name rather than his?

I know if we had two separate self-only insurance policies, two separate HSA accounts would be necessary. But I can't find any specific info on this particular situation. We'd prefer to not open and keep up with another account unless necessary. Appreciate any help.

[Critter-3]

As long as YOU are covered by a HDHP you can contribute to YOUR HSA account no matter whose name the policy is in.  

[AmeliesUncle]

If the corporation is paying for or reimbursing YOU, then YOUR W-2 should be showing the increase wages in Box 1.

[MelissaT875]

Thanks for the reply. I have edited my original post to be more accurate. I am not being reimbursed at all. All contributions are included in my husband's taxable income and reported on W2. Everything tax wise is good. My question is - Is it ok if those contributions are deposited into an HSA account that is in my name rather than his? 

We are simply trying to avoid having another account to keep up with, if possible. Any help is appreciated. Thanks!

[Critter-3]

My original answer still stands.

[Mike9241]

the HSA trustee will send the IRS info denoting your contribution to your HSA account.  you would have to report it in your joint return on form 8889 for yourself. since it's not on your w-2 you can't show it as employer contribution which leaves the issue as to where to report it on the tax form.  the HSA showing up on your husband's w-2 would flow to his form 8889 but the IRS will have no record from an HSA trustee that he actually contributed. There is no such thing as a joint HSA. as a result the IRS computers will likely kick out a notice.  if you are performing services for the corp you should be getting your own w-2 so the HSA contribution can be reported properly.  if you are not getting compensated that too can create an issue.  you may want to consult with a tax professional before filing 

[Critter-3]

This is not an issue ... the W-2 would not show any code W in box 12 naturally since the contribution is not being made thru the payroll system.

You will make the contribution to your HSA outside of a payroll system and deduct it on your return.  In the TT program you will just  complete the HSA contribution section and the HDHP section ... it is just that simple and will not get you an IRS letter.

The HSA is handled in 3 parts in the TT program :

First the contribution:

https://ttlc.intuit.com/replies/4557768

https://ttlc.intuit.com/replies/4785646

Next the limitations screen to confirm you are eligible to make the contributions:

Until you complete the HSA portion of the TurboTax interview to establish your eligibility for an HSA contribution, TurboTax will treat the amount entered on the W-2 form as an excess HSA contribution.

https://ttlc.intuit.com/replies/4788059

And lastly any distribution:

https://ttlc.intuit.com/replies/4787864

[AmeliesUncle]

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@MelissaT875 wrote:

I am not being reimbursed at all. All contributions are included in my husband's taxable income and reported on W2.

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I don't understand.

If the corporation paid for the HSA contributions for your husband, either directly or by reimbursement, the HSA contributions should have already been contributed into your husband's account.  And it is properly added to box 1 of his W-2.

If the corporation is paid for the HSA contributions for you, either directly or by reimbursement, the HSA contributions should have already been contributed into your account.  And it should have been added to box 1 of your W-2.

If the corporation did not pay for any HSA contributions at all, then neither your W-2 or your husband's W-2 would be affected.