What is cafeteria plan for 8889 form?

Forum|Forum|6 years ago
December 13, 2019
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This is probably a dumb question. So, I have X-dollars I had my employer withhold from my paycheck in pre-tax dollars towards my HSA account. Nowhere in this process were the words "cafeteria plan."

So, when I fill out form 8889 line 2, I think I'm understanding "cafeteria plan" is probably not the best term used here. I think what is being asked is to include all non-prex tax dollar on this line, ie taxed HSA contributions.

If that is the case then my X-dollars of pre-tax should NOT go on this line. Only post-tax contributions I have made towards my HSA account should be on this line. And since I didn't make taxed dollar contributions, I would put zero.

Is my understanding correct or did I miss something?

Best answer by BillM223

Line 2 on the 8889 has any money you contributed to your HSA with after-tax dollars, no pre-tax dollars.

Line 9 has the total of what your employer and you through payroll deduction contribution to your HSA (generally this is the amount with Code W in box 12 on your W-2).

"The difference is what my employer gave as "free money" to my HSA but only to a limit based on matching our contribution. " I don't understand what you mean by this. Are you saying that the employer gave you after-tax dollars to put in your HSA? If so, that would go on line 2, but this is an unusual arrangement. This means that this "free money" was included in Wages in Boxes 1, 3, and 5 on your W-2 and is not in the code W amount in box 12.

"employer matching is not suppose to be in that amount."

If the employer matching is included in the code W amount and is NOT removed from Wages in boxes 1, 3, and 5, this this would be true...but this is really unusual.

Unfortunately, you can't tell from looking at the W-2 if the "free money" was included in your wages - you have to ask your HR department to be sure.

If the "free money" is NOT in your wages on the W-2, then it should have been included in the code W amount. In this case, you would have to ask for a corrected W-2.

Note that code W amount often does not match the 5498-SA because of excess contributions returned, contributions made in subsequent years, and so on.

RachelW33

Alumni - Expert

Yes, you are absolutely correct. Contributions made with pre-tax money (i.e. cafeteria plan, hsa) should not be included on Line 2 of your Form 8889.

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jr72Author

Level 3

On this same topic, my W2 in box 12 has less than 5498-SA. The difference is what my employer gave as "free money" to my HSA but only to a limit based on matching our contribution. I even asked if the number is wrong on box 12 for W section and they said its correct and employer matching is not suppose to be in that amount.

So, would the employer matching also be added to line 9 even though instructions say only put box 12 W from W2? Because I definitely wouldn't put employer matching on line 2 since that's for post-tax dollars.

BillM223Answer

Level 15