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Need some help? Lively is here to dissect the complexity of your HSA tax obligations. We will help showcase key requirements you need no matter if you this is your first year with an HSA, have multiple HSAs, or transferred your HSA to a new provider.
HSA Contribution Refresher
As a quick review, HSA contribution limits for 2017 are $3,400 for individuals and $6,750 for families. Please review your HSA contributions for this year, to ensure you have not over-contributed to your HSA. If you are 55 years of age or older, you do have an extra $1,000/year in contributions, so keep that in mind.
HSA Tax Scenarios
- I opened my first HSA. Welcome, you know join over 21 million HSA users. You will need a few forms to prepare for your taxes, but unless you over-contributed, or use your HSA for non-qualified expenses, it should be straightforward. You can see our HSA tax form checklist here.
- I have multiple HSAs. You will be required to obtain multiple forms (one per HSA). On top of that, HSA contributions are regulated by eligible individuals, so if you or a family member are contributing to multiple HSAs, you need to ensure you are below the yearly eligible contribution limits for your HSA.
- I transferred my HSA to a new provider (and closed my previous HSA). There are a few nuances to an HSA transfer from the type of transfer (normal rollover, trustee-to-trustee, IRA to HSA rollover) and the annual or lifetime limits imposed for each. You will need to show your HSA transfer/rollover (which will be reported as an HSA distribution) into your new HSA account (which will be reported as a transfer) so that these two events can “offset” for tax purposes. Beware, without tax forms from both providers, you could be on the hook for an early HSA distribution penalty.
During tax season the paperwork can be frustrating. We hope this overview has eliminated a need to search for any unnecessary forms that further waste your time. Be vigilant about all of the tax requirements that are part of your HSA account to ensure you are tax compliant.
Disclaimer: Nothing on this page is intended to provide any tax, legal, insurance or financial advice. Please consult with a professional in those areas for specific advice related to your situation. Additional forms may be required for federal or state tax purposes. For more information on HSAs and tax or reporting requirements, please refer to IRS Publication 969.