Can I remove Form 8889 if 100% of contributions to a rolled over HSA were ineligible and will be withdrawn prior to filing?

[s0me0ne1]

My wife's HSA rolled over from 2021 to 2022. In late 2021, we switched insurance providers and were no longer in a HDHP but my wife accidentally contributed to the HSA in 2022. We will withdraw 100% of these funds but TurboTax is flagging Form 8889 Line 1 (Check the box to indicate your coverage under a high-deductible health plan (HDHP) during 2022) as required however there is no valid option for this box that applies to us.

[RobertB4444]

You should check the box to indicate that when you had the HSA she had a HDHP.  Since you are indicating that you are removing the funds that won't make any difference.

@s0me0ne1 

[s0me0ne1]

Thanks for the reply! TurboTax seems to try and auto-populate Line 3 on the Form 8889-S when I select the "Family" coverage option she had at that time which ends up populating all the way down the sheet - Can I just select "None" for each month despite selecting "Family" for Line 1?

[BillM223]

"My wife's HSA rolled over from 2021 to 2022. " What does mean? Did your wife roll over one HSA to another, or roll over an IRA to an HSA, or did you mean something else?

"TurboTax is flagging Form 8889 Line 1 (Check the box to indicate your coverage under a high-deductible health plan (HDHP) during 2022)" Yes, this is an example of where TurboTax does know how to handle what appears to be a contradictory situation - you claim to have an HSA but did not show any HDHP coverage for the year.

You had to claim that you had an HSA in order to get to the HSA interview, where you showed that you did not have HDHP coverage for any month in 2022 (this is correct on your part). So for the line 1 message in the Review, just check Self in order to get around this message. It won't matter because you showed no HDHP coverage in any month - we are just working around the error message. Don't change the entries for each month.