Differing W-2 HSA amount from HSA 5498-SA amount

[azstephen98]

You can contribute up to $6750 to your HSA for 2017, including employer contributions.  According to the 5498-SA from my HSA, I contributed $6427.28 for 2017.  However, this does not include a $209.60 contribution from my employer at the end of December 2017 but does appear to include a $27.28 contribution made by the employer at the end of 2016.  

Basically, the HSA is counting the contributions toward a particular year based on the date they receive or process them, as it's not earmarked by my employer for the previous year.  Conversely, my employer is counting the contribution toward the year I received the paycheck.  For example, the $209.60 shows up on my W-2 for 2017 but does not show up on my HSA 5498-SA.  The HSA customer service confirmed that it is being counted toward 2018.

I informed my employer of this, and they contacted the HSA.  Nobody is issuing a corrected document.  I assume this is correct.  

1) Does anyone know otherwise?  

2) Also, I wanted to pretty much max out my contribution for 2017, which I can do still, so I contributed an additional $320 toward it in Feb 2018, taking it very close to the maximum amount allowed.  Should I receive a corrected 5498-SA for this?

3) How should I enter this in TurboTax (CD/desktop version)?

[BMcCalpin]

Unless they are otherwise informed, the HSA will apply an HSA contribution to the year in which it is received. If your employer wants to make a contribution earmarked for a different year (for example, both you and your employer can make contributions for tax year 2017 until April 17 2018), it is incumbent on your employer to make that very clear to the HSA.

"I informed my employer of this, and they contacted the HSA.  Nobody is issuing a corrected document. " Does this mean that the HSA administrator is moving this to 2017? Or is the $209.60 staying in 2018?

If the HSA is moving the contribution to 2017, I would expect a corrected 5498-SA.

Because you can contribute to your 2017 HSA until April 17 2018, it is not required for an HSA administrator to issue the 5498-SA until May 31 2018. However, some do issue the 5498-SA earlier. In your case, if you go ahead and contribute the $320 before the due date of the return, you don't have to wait for a corrected 5498-SA - you can go ahead and enter this amount on the "Let's enter your HSA contributions" screen (see screenshot below) on the second line for "personal contributions".

But you need to determine which year the $209.60 ended up in before you contribute another $320.

[azstephen98]

Thank you for your help!  Yes, the $290.60 is staying in 2018.

[azstephen98]

For some reason, I had $209.60 in the original post, but the correct figure is $290.60.  I did contribute the $320 to my HSA in Feb 2018 for 2017, but because the $290.60 shows up on my W-2 for 2017, TurboTax thinks I overcontributed for the year.  As mentioned in the original post, the HSA has the $290.60 listed for 2018.  I could use some guidance as to how to enter it in TurboTax, so I'm not charged a penalty.

[BMcCalpin]

So after the dust settles, you still have a $27.28 excess in 2017? In that case, as long as you have the money in the HSA, tell TurboTax that you will withdraw the excess contribution before the due date of the return. TurboTax will make all the necessary adjustments (it will add the excess to Line 21 (Other Income) on the 1040. Then make sure that you do call your HSA administration and ask for a "withdrawal of excess contributions". They will send you a check for the excess. Spend it as you like.

Oh, early next year, you will get a 1099-SA with the earnings of the excess contribution - just enter it on next year's return.

[azstephen98]

No.  After the dust settles, I have an excess contribution of $261.  This is because there's a difference between the W-2 amount and the 5498-SA amount, due to the employer counting a contribution from an end of Dec paycheck toward 2017, the HSA counting it toward 2018 when they received or processed it, and me trying to max out the HSA by contributing another $320 (in Feb 2018) for 2017.  I'm wanting to figure out how to handle it correctly.  Contact the HSA and see if I can change my Feb 2018 contribution of $320, earmarked for 2017, to 2018?  

Both the W-2 amount and the 5498-SA amounts are being reported to the IRS.  This can't be an uncommon occurrence.  Does the W-2 figure take precedence over the 5498-SA?  Does it matter if I chose to use the HSA figures and manually override the software?

[BMcCalpin]

Yes, it does happen, and how you approach it varies. Anytime you report something different than a form which is copied to the IRS (like both the W-2 and the 5498-SA), you run the risk of a letter from the IRS. Sometimes, this is the only thing to do - fill it out as best as you can and be prepared to explain the error on (1) your employer and (2) your HSA when the IRS letter comes.

Or you can just avoid this by contacting your HSA administrator and telling them that you made a "Mistaken Contribution" in February 2018 (the $320). In this case, you will ask them to return that $320. You will remove that from the appropriate line in TurboTax (2017 contributions made in 2018, I think), and your excess contribution will go away.

That might be the simplest thing to do.