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January 19, 2024
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Do I have to report the one time IRA transfer to my HSA account?

  • January 19, 2024
  • 2 replies
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Best answer by dmertz

When you enter the Form 1099-R, TurboTax will ask how much of the distribution was transferred to the HSA.  This amount will be reported on Form 1040 lines 4a and 4b as a nontaxable "HFD" (HSA Funding Distribution).  It will also be reported on Form 8889 line 10 as part of your HSA contribution for the year.

2 replies

Employee
January 19, 2024

Yes.  You have to tell the IRS where the IRA withdrawal went, and you have to certify that you were enrolled in an eligible HDHP so the HSA contribution is allowed.  If you skip these steps, the IRS can assess tax on the IRA withdrawal, or a penalty on the HSA contribution, or both.  

dmertzAnswer
Employee
January 19, 2024

When you enter the Form 1099-R, TurboTax will ask how much of the distribution was transferred to the HSA.  This amount will be reported on Form 1040 lines 4a and 4b as a nontaxable "HFD" (HSA Funding Distribution).  It will also be reported on Form 8889 line 10 as part of your HSA contribution for the year.