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line810310
Returning Member

trustee-to-trustee transfer from old HSA to new HSA. How to exclude this amount transferred from income?

I switched jobs in mid-2021 and requested a trustee-to-trustee transfer from old HSA to new HSA with new employer.

I've received two 1099-SAs from both banks but neither of them had the amount that was transferred. But W2 from my old company and new company show a contribution amount in box 12c (W). 

 

Per IRS on form 8889, "If you instruct the trustee of your HSA to transfer funds directly to the trustee of another of your HSAs, the transfer is not considered a rollover. ...

Do not include the amount transferred in income, deduct it as a contribution, or include it as a distribution on line 14a."

 

How can I exclude this transfer from my income (since fields in my W2 was autopopulated when I entered the information) and how can I check to make sure that I am not deducting this as a contribution? 

 

Appreciate any guidance on this.

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3 Replies

trustee-to-trustee transfer from old HSA to new HSA. How to exclude this amount transferred from income?

you should not receive any tax forms for a trustee to trustee transfer and there is nothing to report on your return with this type of transfer.

 

line810310
Returning Member

trustee-to-trustee transfer from old HSA to new HSA. How to exclude this amount transferred from income?

Thank you for your reply. However, TT informed me that I have an excess contribution. But the amount that was excess was a transfer from my old HSA. 

Is there a way for me to exclude this transfer from my W2 per IRS instruction? 

PattiF
Expert Alumni

trustee-to-trustee transfer from old HSA to new HSA. How to exclude this amount transferred from income?

You will also have to enter this in the Deductions & Credits section under HSA, MSA Contributions too. 

 

Follow the program in the Deductions & Credits section for the HSA entries to record your transfer using the information on the 1099-SAs.

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