I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
Michelle2024
Posts: 16
Joined: Mon Jun 03, 2024 8:36 pm

I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Post by Michelle2024 »

Hi all. I opened an HSA account at Fidelity. I work as a per diem (I changed from fulltime employee with benefits to per diem about 8 months ago). I had an HSA I was contributing to when I was an employee; they no longer allow me to contribute to it, so after reading online, I opened one at Fidelity. When I tried to give the company who writes my paychecks thd Fidelity HSA account information to have the money deducted from my paycheck pretax, they said because I am not technically an “employee with benefits“ they are unable to do this. I asked to speak with a higher up supervisor, he confirmed the same thing.

I am enrolled in a high deductible health plan, but not with my “employer”- I got it off the ACA.

I’m not sure how to get the pretax money into my HSA account given that the entity who cuts my paychecks says they can’t do it. Does anyone have any pointers?

No, I do not own my own business or anything.
Mike Scott
Posts: 3621
Joined: Fri Jul 19, 2013 2:45 pm

Re: I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Post by Mike Scott »

You just put the $ in yourself and then report it on your next tax return.
sailaway
Posts: 8592
Joined: Fri May 12, 2017 1:11 pm

Re: I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Post by sailaway »

Just like a deductible IRA, you make the contribution and work it out on your tax return.

Only an employer based HSA, at their specific vendor, is eligible for the savings on FICA. Self employed individuals may have some leeway on that, but as you point out, that doesn't apply to you.
aristotelian
Posts: 12557
Joined: Wed Jan 11, 2017 7:05 pm

Re: I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Post by aristotelian »

Simply contribute directly to your Fidelity account, then claim the HSA deduction by filling out form 8889 and entering the amount on Schedule 1, line 13.

You will still have to pay FICA taxes and have taxes withheld from your paycheck, but your HSA contribution will be lower your taxes owed so it will still be pretax.
Topic Author
Michelle2024
Posts: 16
Joined: Mon Jun 03, 2024 8:36 pm

Re: I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Post by Michelle2024 »

OK, thanks all!
Super Hans
Posts: 320
Joined: Sat Jul 14, 2012 9:18 pm
Location: Washington, D.C.

Re: I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Post by Super Hans »

I designate my HSA contribution to the Fidelity account from payroll, and as far as I can tell it's properly treated so I don't pay FICA. The employer-sponsored HSA is the lame sort that doesn't pay interest.
User avatar
Nate79
Posts: 9464
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Post by Nate79 »

Super Hans wrote: Mon Jun 10, 2024 12:23 pm I designate my HSA contribution to the Fidelity account from payroll, and as far as I can tell it's properly treated so I don't pay FICA. The employer-sponsored HSA is the lame sort that doesn't pay interest.
You are definitely the exception and not the rule. This generally is not allowed for cafeteria type plans which use a designated employer sponsored HSA plan. Count yourself very lucky (or maybe an inept HR/payroll is doing something they shouldn't....).
Super Hans
Posts: 320
Joined: Sat Jul 14, 2012 9:18 pm
Location: Washington, D.C.

Re: I opened a HSA account at Fidelity but my employer won’t deduct from my paycheck pre-tax

Post by Super Hans »

Nate79 wrote: Mon Jun 10, 2024 4:57 pm
Super Hans wrote: Mon Jun 10, 2024 12:23 pm I designate my HSA contribution to the Fidelity account from payroll, and as far as I can tell it's properly treated so I don't pay FICA. The employer-sponsored HSA is the lame sort that doesn't pay interest.
You are definitely the exception and not the rule. This generally is not allowed for cafeteria type plans which use a designated employer sponsored HSA plan. Count yourself very lucky (or maybe an inept HR/payroll is doing something they shouldn't....).
For what it's worth, I'm a federal employee paid through the Department of Agriculture's shared services scheme.
Post Reply