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HSA contributions from husbands employer to my HSA

Forum|Forum|1 year ago
March 18, 2025
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My husband's previous employer seeds my HSA (he is on Medicare so does not have an HSA). This is triggering a taxable excess contribution in Turbo Tax for his HSA even tho he doesn't have one. I enter that he doesn't have one but it keeps adding it. How do I over-ride this in Turbo Tax?

Best answer by Opus 17

@Osuclm wrote:

Yes, the contribution is reported on a W2 from his previous employer, along with imputed income on term life insurance. It's categorized under box 12d, letter W. This is a benefit of me still being on the company's medical insurance even tho he is on Medicare. And yes, I am on a HDHP as my only medical insurance.

He can't contribute to an HSA (or have contributions by someone else) if he is on Medicare, or he will pay a penalty. What should be happening is that the company makes deposits to an HSA in his name. Then, he removes them as "excess contributions" before the April 15 tax deadline (to avoid the penalties), and then you can turn around and deposit the same amount of money in an HSA in your own name, and get a tax deduction.

Are you sure the HSA is in your name? Remember that an HSA can only be owned by one individual, and there is no such thing as a joint HSA. You could each have a separate HSA, and if his HSA is at a bank sponsored by his former workplace and your workplace does not sponsor an HSA for you, you can open an HSA in your own name at many other private banks or brokers. You might have to pay a slightly higher monthly maintenance fee.

I don't know if the current situation is legal and I have no idea how to report it. You may want to contact your own tax specialist. To have a Turbotax expert review the situation you would have to upgrade to either the Live Assist or Full Service versions.

@dmertz can you suggest anything I am missing?

O

Opus 17

Employee

That's probably illegal. To the best of my knowledge, your husband's former employer can give him certain benefits, or could pay him a cash stipend that would be taxable, but can't give you a tax-free benefit.

How is the contribution being reported. Does your husband get a W-2 from his former employer?

Are you enrolled in a qualifying HDHP and have no other medical coverage, so you are eligible to make HSA contributions?

O

OsuclmAuthor

Yes, the contribution is reported on a W2 from his previous employer, along with imputed income on term life insurance. It's categorized under box 12d, letter W. This is a benefit of me still being on the company's medical insurance even tho he is on Medicare. And yes, I am on a HDHP as my only medical insurance.

O

Opus 17Answer

Employee

@Osuclm wrote:

Yes, the contribution is reported on a W2 from his previous employer, along with imputed income on term life insurance. It's categorized under box 12d, letter W. This is a benefit of me still being on the company's medical insurance even tho he is on Medicare. And yes, I am on a HDHP as my only medical insurance.

He can't contribute to an HSA (or have contributions by someone else) if he is on Medicare, or he will pay a penalty. What should be happening is that the company makes deposits to an HSA in his name. Then, he removes them as "excess contributions" before the April 15 tax deadline (to avoid the penalties), and then you can turn around and deposit the same amount of money in an HSA in your own name, and get a tax deduction.

Are you sure the HSA is in your name? Remember that an HSA can only be owned by one individual, and there is no such thing as a joint HSA. You could each have a separate HSA, and if his HSA is at a bank sponsored by his former workplace and your workplace does not sponsor an HSA for you, you can open an HSA in your own name at many other private banks or brokers. You might have to pay a slightly higher monthly maintenance fee.

I don't know if the current situation is legal and I have no idea how to report it. You may want to contact your own tax specialist. To have a Turbotax expert review the situation you would have to upgrade to either the Live Assist or Full Service versions.

@dmertz can you suggest anything I am missing?

D

dmertz

Employee

When you file jointly and you visit the HSA section of TurboTax, TurboTax will allow you to specify the portion (all of it in this case) of the amount reported with code W in box 12 of your husband's W-2 that is to be allocated to his spouse's (your) HSA contribution.