HSA Rollover tax reporting question

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dacalo
Posts: 102
Joined: Mon Mar 28, 2016 11:09 pm

HSA Rollover tax reporting question

Post by dacalo » Sun Feb 10, 2019 2:53 pm

Hello folks,

I am working on 2018 tax and we rolled over our HSA from Healthequity to Lively around October. I would assume that we would need to file something similar to 401k rollover but for the life of me I can't find the form number. I've been searching google, TaxAct search and IRS past hour and I am fruitless. Would someone with HSA rollover experience please help this lost soul? Thank you. :(

kaneohe
Posts: 5956
Joined: Mon Sep 22, 2008 12:38 pm

Re: HSA Rollover tax reporting question

Post by kaneohe » Sun Feb 10, 2019 3:02 pm

"Distributions from your HSA and contributions made for or during the previous year need to be reported on IRS form 8889. This is important because it needs to match what is reported on the 1099-SA form"

http://www.hsabank.com/hsabank/learning ... x-time-101

terran
Posts: 1018
Joined: Sat Jan 10, 2015 10:50 pm

Re: HSA Rollover tax reporting question

Post by terran » Sun Feb 10, 2019 3:25 pm

I believe you're looking for form 8889, lines 14a and 14b: https://www.irs.gov/pub/irs-pdf/f8889.pdf

cas
Posts: 728
Joined: Wed Apr 26, 2017 8:41 am

Re: HSA Rollover tax reporting question

Post by cas » Sun Feb 10, 2019 4:56 pm

Did you do a trustee-to-trustee transfer or a 60-day rollover?

With a trustee-to-trustee transfer, you sent a form to the receiving HSA custodian, and they handled everything from there. You never got the funds into your possession and you, yourself, never wrote a check to the receiving HSA custodian.

A 60-day rollover can take several forms, but involves, at one point or another, you, yourself, writing a check to the receiving HSA custodian, either from your own checking account or from the HSA deposit account of the originating HSA.

If I've figured this out correctly (won't be reporting my own 2019 60-day rollover done this last month until next year):

For a trustee-to-trustee transfer:
- the sending HSA custodian doesn't report the transfer amount anywhere on the 1099-SA they sent you in January. (If you didn't have any distributions aside from the transfer, you might not get a 1099-SA.)
- the receiving HSA custodian doesn't report the transfer amount on line 4 the 5498-SA that they send you (perhaps not until this coming May), although they will report your year end balance on line 5.
- nothing gets reported on the Form 8889 or anywhere else on the tax return

For a 60-day rollover:
- the sending HSA custodian reports (on Line 1) the transfer amount, coded as a normal distribution (on Line 3), on the 1099-SA, they sent you in January.
- the receiving HSA custodian reports the transfer amount on line 4 the 5498-SA that they send you (perhaps not until this coming May), (plus they report your year end balance on line 5.)
- These numbers transfer over to Form 8889, lines 14a and 14b

(Somebody more knowledgeable please correct if I've gotten this wrong.)

Topic Author
dacalo
Posts: 102
Joined: Mon Mar 28, 2016 11:09 pm

Re: HSA Rollover tax reporting question

Post by dacalo » Mon Feb 11, 2019 4:20 pm

cas wrote:
Sun Feb 10, 2019 4:56 pm
Did you do a trustee-to-trustee transfer or a 60-day rollover?

With a trustee-to-trustee transfer, you sent a form to the receiving HSA custodian, and they handled everything from there. You never got the funds into your possession and you, yourself, never wrote a check to the receiving HSA custodian.

A 60-day rollover can take several forms, but involves, at one point or another, you, yourself, writing a check to the receiving HSA custodian, either from your own checking account or from the HSA deposit account of the originating HSA.

If I've figured this out correctly (won't be reporting my own 2019 60-day rollover done this last month until next year):

For a trustee-to-trustee transfer:
- the sending HSA custodian doesn't report the transfer amount anywhere on the 1099-SA they sent you in January. (If you didn't have any distributions aside from the transfer, you might not get a 1099-SA.)
- the receiving HSA custodian doesn't report the transfer amount on line 4 the 5498-SA that they send you (perhaps not until this coming May), although they will report your year end balance on line 5.
- nothing gets reported on the Form 8889 or anywhere else on the tax return

For a 60-day rollover:
- the sending HSA custodian reports (on Line 1) the transfer amount, coded as a normal distribution (on Line 3), on the 1099-SA, they sent you in January.
- the receiving HSA custodian reports the transfer amount on line 4 the 5498-SA that they send you (perhaps not until this coming May), (plus they report your year end balance on line 5.)
- These numbers transfer over to Form 8889, lines 14a and 14b

(Somebody more knowledgeable please correct if I've gotten this wrong.)
Thank you so much everyone and Cas! I did a trustee-to-trustee transfer, directly from HealthEquity to Lively. Looks like there is nothing for me to file. I was scanning HealthEquity's 1099-SA but as you said, it wasn't in there so I was a bit confused. All makes sense now, thanks for the thoughtful post.

tenkuky
Posts: 892
Joined: Sun Dec 14, 2014 4:28 pm

Re: HSA Rollover tax reporting question

Post by tenkuky » Tue Feb 12, 2019 6:03 pm

I have exactly same situation (except I did direct rollover) so I got 1099 from HealthEquity and nothing from Lively.
I just tried to get an answer from Lively when I came back to BH and here it is.
Thank you guys!
I will do everything without the 5498 which will come from Lively in May.

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