2021 401k contributions and HSA contributions

[melissaforpeace315]

When filing for my 2021 taxes, do I need to submit any form in turbotax to show that I contributed to my 401k account? Do I need a 5498?  I checked my 401k account right now and it doesn't have any tax documents....

When filing for my 2021 taxes, do I need to submit any form in turbotax to show that I contributed to my HSA? 

[RaifH · Accepted solution]

No, aside from your W-2 which should have a record of the contributions to your 401(k) and your HSA, no additional documentation is required. Your W-2 should contain a Code W in Box 12 for your HSA contribution and a Code D in Box 12 if you contributed to a 401(k). You may also notice that your Box 1 Wages amount is lower than your Box 3 and Box 5 Social Security and Medicare Wages. This is because your HSA and 401(k) are funded with pre-tax dollars, which means the amount of money you contributed to these accounts through your job is not included as part of your taxable income for this year. Since you already received a deduction on your taxable wages from contributing to your 401(k) and HSA, you do not receive an additional deduction on your tax return. If you qualify for the Saver's Credit for your 401(k) contribution, TurboTax will calculate this automatically.

If you made additional contributions to your HSA out-of-pocket, you do not need to wait to get your 5498-SA. You will want to report this on your tax return. To do that in TurboTax:

1. In the Federal section of your tax return, go to Deductions & Credits and scroll down to Medical and click Revisit/Start next to HSA, MSA Contributions.
2. If you made any withdrawals from your HSA, you should receive a 1099-SA and answer Yes to Did you use your HSA to pay for anything in 2021? Otherwise, select No.
3. Assuming you did not inherit this HSA, select No.
4. Under Let's enter your HSA contributions your employer amount should already be in there from the W-2. If you made additional contributions, enter them in Any contributions you personally made. Otherwise, leave it blank. 
5. Answer the questions on the next two screens, then make sure you answer the question related to your HDHP correctly on the next screen. 

[melissaforpeace315]

@RaifH Thank you sooo much!  So I actually received a 5498-SA from my old employer's HSA account (right now the account has $0 because I did a lump sump rollover to a new HSA, my current employer's HSA).  The fact that I got. 5498-SA from my old HSA account.... with Box 2 (total contributions made in 2021) filled out, does that mean that I don't need to include this form when filing for TurboTax ?  Also, do you happen to know if it was "correct" in that I received this 5498-SA?  I thought that 5498-SA is only for contributions that I made out of pocket.  I didn't contribute to my HSA out-of-pocket.... my employer automatically deducted it from my paycheck every two weeks and deposited it to my HSA.....

[RaifH]

Yes, you are correct, you do not need to include this form on your tax return. The number on the 5498-SA that they supplied should match the number in Box 12 Code W of your old employer's W-2 for 2021. Employer contributions are included on Form 5498-SA, so it is correct that they were reported to you on this form.

If you rolled this account over into a new HSA, you still should expect a 1099-SA from this HSA. That will need to be included on your tax return using the steps I outlined above. 

[melissaforpeace315]

@RaifH Thank you!!  Just one last question: I was reading your sentence, "If you rolled this account over into a new HSA, you still should expect a 1099-SA from this HSA. That will need to be included on your tax return using the steps I outlined above."

So should I expect a 1099-SA from the old HSA trustee, or the new HSA trustee (the one with all my money from 2021)?

[melissaforpeace315]

@RaifH Hi! So I just called customer service of my old HSA custodian and they stated that since I didn't use any money in my HSA for medical expenses, then I don't get a 1099-SA.  The rep said that even though I rolled over the money from this old HSA to. new HSA, there isn't any tax document that the old HSA generates.

Do you think that is correct?  I looked everywhere in my old HSA account online and don't see anything other than a 5498-SA. How else will IRS know that I didn't "cash" or "take out" the money and put it in my pocket? I just want to make sure the IRS knows that my new HSA has the money, and not me. 

[LoganathanB]

1099 SA is issued only when there is a distribution and it is reported to IRS.

A trustee-to-trustee transfer of an HSA, where the funds are not paid to you, is neither distribution nor a rollover and is not reported on Forms 1099-SA or Forms 5498-SA.

Click on the link for more information

HSA Rollover

[melissaforpeace315]

@LoganathanB Thank you! I was reading this somewhere: "If you do not Amend and file Form 8889, the IRS will deem all of the HSA Distributions as non-qualified and will add them to your Taxable Income. Basically, filing Form 8889 lets them know the HSA Distributions were a non-taxable event.Jun 6, 2019"

Is the above statement not true? 

Just to make sure, the fact that I rolled over my entire old HSA to a new HSA, and that my old HSA administrator/trustee informed me that there is no 1099-SA for me, is correct? I just want to prevent being taxed by the IRS for this HSA rollover that I did in 2021 and was wondering what type of document that needs to be provided to the IRS.  But when I called customer service of the old HSA trustee, the rep told me there isn't any document....

[LoganathanB]

If you look at Part II of 8889, it has the information about distribution from HSA and you did not receive any distribution or 1099-SA and no distribution was reported to IRS by the trustees.

You do not have to provide any document to IRS.

[melissaforpeace315]

@LoganathanB Thank you so much! So I checked my old HSA trustee's online portal and see that the 5498-SA shows the amount that I had contributed to that HSA for 2021.  I didn't get my 5498-SA from the new (current HSA trustee yet, and called into customer service, asking them where it is. 

I presume that I should get a 5498-SA from my new employer's HSA as well, correct?  And in the 5498-SA of my new employer's HSA, it should only indicate the amount that I had contributed to this HSA (and not include any amount that I had contributed to the old HSA, which I did a trustee-to-trustee transfer into this one, correct)?  Otherwise, if my new HSA includes the amount that was involved in the trustee-to-trustee transfer that happened in 2021, it will look like I over contributed over $3,600 in a year, correct?

[LoganathanB]

If you look at the 5498-SA form, box number 5 gives the information about rollovers and therefore IRS will know that it was rolled over from the old to a new account.   Yes, you will get a 5498-SA for the year in which HSA was rolled over from the new trustee that will show the rollover in Box 5.  

Click on the link for more information.   5498-SA

[melissaforpeace315]

@LoganathanB Thank you! But being that I'm not going to receive this 5498 presumably until later on until the year, then that means that there is no tax document that I can provide to Turbotax to report that I rolled over my HSA funds to a new trustee in 2021 right?  Since my old HSA doesn't have a tax document, and the new HSA isn't going to have the 5498 until later, then I have nothing to show, correct? 

[MarilynG1]

Yes, you don't have the documentation right now for your HSA rollover to your new employer, but the 5498 is not required to be reported on your tax return.

When you receive it, just keep it for your records.

If you entered a W-2 for your old employer that shows HSA contributions in 2021, in TurboTax you can indicate that you rolled it over.

Click this link for more info on HSA Rollovers.