HSA Account with no HDHP

[mfvenks2024]

Thank you for the fast reply!

When you were in the HSA interview and you were asked, "Was [name] covered by a High Deductible Health Plan (HDHP) in 2023?", do you answer "No, I did not have coverage?"
-  Yes I did. Here is a screenshot: 

The issue is more about this step, which is asking me on Dec 2022, what kind of HDPH do I have. I think you are suggesting I choose "None"?


It's weird that it asked me again in review because I fill in "None" for this question in the previous sections: 

[BillM223]

You are being ask this because you have wandered off into another part of the HSA interview. "I think you are suggesting I choose "None"?" is the answer for a different question.

I am sorry, but did you have HDHP coverage in 2022 (I am handling so many similar questions here at the end of tax season)? If no, then answer NONE into the question "What type of High Deductible Health Plan (HDHP) did you have on December 1, 2022?" This will save you from answering a lot of questions that don't have to do with you.

[mfvenks2024]

I had a HDPH until Aug, 2022. But not after that since I switched job and thus switched to a traditional plan 

[BillM223]

"What type of High Deductible Health Plan (HDHP) did you have on December 1, 2022?" So in this case you did not have HDHP coverage on December 1, 2022, so just say NONE and be done with it...

[aparna_p]

You really need to get this error fixed. TT does not account for the situation of filing 8889 when you have got regular distribution from a HSA account that you are maintaining from past that does not have any HDHP plan associated with it. 

[BlindFaith]

I have this same issue and it is preventing me to e-file. My employer put money into a HSA for me when I don't have a HDHP. I marked this as excess but I am still getting an error on form 889-T box 1 asking me to select self or family for which HDHP I had. It should let me select none or at least submit this form regardless.

[BillM223]

There is no reason why you can't e-file.

When TurboTax asked if you had HDHP coverage, you replied that in no month of 2024 did you have HDHP coverage, right?

This will make the numbers on the 8889 correct.

Then, when you come to the Review and see the request to enter Self or Family on Line 1, enter either one (I usually suggest Self, but either one is fine).

This is a workaround for that part of the Review, to allow you to complete your return.

[BlindFaith]

Q: When TurboTax asked if you had HDHP coverage, you replied that in no month of 2024 did you have HDHP coverage, right?
A: Yes is there somewhere I can see that in the forms sheet? I just want to make sure it is mentioned somewhere so that I can be sure the IRS will understand them when they are received.

"Then, when you come to the Review and see the request to enter Self or Family on Line 1, enter either one (I usually suggest Self, but either one is fine)."
If this were filed by mail would it just be left blank instead or would they expect a response?

[BillM223]

When you look at your 8889, line 3 will have your annual HSA contribution limit, which will be zero in your case for saying that you did not have HDHP coverage in any month.

Note that the line 3 amount can be changed on the subsequent lines, like if you are under a Family HDHP plan or are 55+, but what you are asking about is line 3. But not to worry, since line 3 is correct, the rest of the numbers will be correct, and you won't have to tell the IRS anything.

Yes, if you file by mail, you likely leave line 1 blank, but we have to give you this workaround to get you to e-file. Note that the IRS Instructions do not address this situation.

@BlindFaith