Medicare isn't HDHP. Excess HSA 2022 contribution got carried over to 2023 & to 2024 since the HSA isn't exhausted. Line 1 in 8889 requires picking "self" or "Family"?

Forum|Forum|1 year ago
March 19, 2025
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No HSA contributions made in 2023 or 2024 but the current HSA balance is higher than the excess contribution in 2022 and hence I need to continue to pay 6% penalty. That's clear. Medicare isn't HDHP which is clear as well and I have answered the TurboTax questions to state that clearly. Form 8889, Question 1 "Check the box to indicate your coverage under a HDHP during 2024" gives only two options "Self-only" and "Family". If I leave both of them blank then TurboTax gives an error. The HSA is for me and my dependent and my dependent has HDHP COBRA and I am on Medicare. There is no information in TurboTax help on this. What should I do? Is this an error in TurboTax software?

TurboTax Online

Best answer by dmertz

yes, you can keep your HSA a/c, but as noted you'll continue to pay the 6% penalty until it's exhausted. Self or family doesn't matter. There will be no Form 8889 in your return. The only reason to answer that question is that Turbotax wants it

To eliminate the penalty before exhausting the HSA you must make an ordinary taxable HSA distribution equal to the excess. The ordinary HSA distribution is made taxable by not claiming that it was applied to any medical expenses. If you are under age 65 at the time of this distribution (probably not if you are on Medicare), the taxable distribution is also subject to a 20% additional tax.

Mike9241

An HSA can only have one taxpayer's name (there is no such thing as a joint HSA). Medicare disqualifies you from having an HSA. You'll pay the penalty until the funds are exhausted or withdrawn. The proper answer to HDHP coverage in Turbotax is "NONE" but for the 8889 to be able to e-file select self. This question relates to the taxpayer's HDHP coverage not who the funds can be used for.

PNR1Author

Medicare doesn't allow making contributions to the HSA but does allow keeping/having the existing HSA - just want to make sure that I am not missing something.

Also, should I select only "self" or is it OK to select "Family" for Question 1 in Form 8889?

Thank you