1099R summary form not working correctly for IRA to HSA rollover

samgrif · Feb 5, 2024 12:48:46 PM

<P>In 2023 I did a once in a lifetime rollover from my IRA to an HSA. My IRA custodian sent me a 1099R with code G, total distribution and no taxable amount which is correct. When I enter this into Turbo Tax Win Desktop version, the amount is carried over twice to the 1099R summary. Once for the Box 1 Total Distribution and then again for the amount on the TurboTax 1099R form under Insurance - HSA funding distribution. This causes an incorrect reporting of taxable income on 1040 since the rollover amount is subtracted twice from other 1099R distributions. I am overriding one of the amounts on the summary (which is a TurboTax form) so that my income is not understated. This needs to be fixed so that others will not have incorrect taxes.</P>

Similar to what can happen at smaller financial institutions, this is likely the result of someone simply marking the wrong checkbox on a form. HFDs are ordinary IRA distributions, not rollovers, but with the requirement that the distribution be paid directly to the HSA.

If Vanguard won't correct the reporting, you'll need to enter a substitute Form 1099-R (Form4852) with the correct code (1 or 7, depending on your age), box 2a equal to box 1, box 2b Taxable amount not determined marked, and the IRS/SEP/SIMPLE box marked.