my husband contributed to his (family) hsa. has hdhp. Turned 65 in december and so medicare enrolled on Dec 1. W-4 codes hsa deductions as W - Employer contributions so not showing up on form 8889 , line 2 as employee contributions. Shows up on line 9, employer contributions. Problem seems twofold. Is he entitled to full years deduction or 11/12? Does company have the right code (W) and if so how do we get that onto line 2 on form 8889?
He is entitled to accept the full contribution made by his employer into his HSA before he retired. Entering the code W in box 12 of the W2 will carry the amount to the proper form for you. The interview will ask you some questions about his HSA later.
TY. so i'm confused because his employer didn't make the contribution. it was deducted from his paycheck.
also, he is not retired. but elected to enroll in medicare A. Entering W is taking it to the 'correct' line on the form if it was truly employer contribution but it is really employee contribution
The employer made the contributions on his behalf of your husband using his money. No big deal. Just make sure to enter the amounts as they are on the W2.
But doing it like this doesn't allow him to deduct the contribution?
It has already been deducted from his income. That's why it appears in box 12. If you believe that the amount that is in box 12 is included in box 1 then you need to contact his employer and request a corrected W2.