HSA Taxable Employer Contributions

Forum|Forum|1 year ago
March 26, 2025
2 replies
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Why does My HSA summary show $1200 "Taxable Employer Contributions" when I thought it's supposed to be tax-free employer contributions (which shows zero on the summary)? Isn't that the whole point that it's supposed to be tax-free?

Best answer by dmertz

You are eligible to contribute to an HSA for the months that you were covered by Medicare Part A. Being age 67, it seems likely that you were ineligible for the entire year, so it seems that no HSA contribution was permitted and you must request a return of excess contribution to avoid penalties and double taxation on the amount contributed. The deadline to receive a return of contribution is April 15, 2025. If you file or request a filing extension by April 15, that deadline is extended to October 15 2025.

Opus 17

Employee

Where are you seeing that?

ATRDAuthor

It's under Federal Taxes, Deductions & Credits, "Your HSA Summary". It has the following in list:

Deduction 0, Total distributions $314, Taxable distributions $0, Taxable earnings on excess contributions $0, TAXABLE EMPLOYER CONTRIBUTIONS $1,200, Tax-Free contributions $0, Excess Employer contributions withdrawn $0

ATRDAuthor

To clarify: I'm wondering if the reason it shows as "taxable" is because of being 67 years old and being on Medicare Part A while also still working (and yes, I have a HDHP). Is it taxable because my employer is actually not supposed to be contributing to my HSA? So even though I'm under the excessive contribution limits, is it considered an "excessive contribution" because I'm on Medicare A?