Question

IRA to HSA rollover

Forum|Forum|5 years ago
January 25, 2021
1 reply
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Where do I report the "qualified HSA funding distribution" in 2020 Turbotax?

TurboTax Basic Windows

You received a 1099-R from the IRA custodian, right? In the screens after you enter the 1099-R itself, there should be a question that asks what you did with the money, and when you say, "I did something else", it should ask you if you put any of it into your HSA.

It is possible that you have to show that you have an HSA before this screen in order to trigger this. If there is a code W in box 12 of your W-2, then TurboTax will know from that point that you have an HSA.

Otherwise, you may need to do a Search (upper right) for hsa and click on the jump-to link, then indicate that you have an HSA, then go straight back to the 1099-R interview and go through it again. Then you can finish the HSA interview after TurboTax knows that you had the Qualified Funding Distribution your HSA.

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V

Vike55Author

I still can't trigger a drop-down box. Are there any other ways to input it? Can I go to forms and mannually input it?

B

BillM223

No, please do not go to the forms and manually add anything - this will void the Accuracy Guarantee if nothing else.

The following (below) is what worked last year - but I am having trouble getting it to work this year. There are two possibilities:

1. The form is not available yet so the way it works is unpredictable, or

2. It doesn't work this year.

However, I can't report it as an issue until the form has been formally released, and that is scheduled for 2/4/2021. That date is an estimate, so please follow the 8889's status in Federal Forms Availability to see when it becomes available.

If this function still does not work after form 8889 has been released (made available), then please come back and tell us.

***2019 Instructions***

***

If you made a qualified funding distribution from an IRA to your HSA, then you can explain this to TurboTax by doing the following:

First, you have to let TurboTax know that you have an HSA. You can do this by having a code W in box 12 of your W-2, or if you don't have the code W amount, then go to the HSA interview and check that you have an HSA (do a Search for hsa (lower case) and jump to it).

Now go back to the 1099-R interview and Edit the 1099-R for the qualified funding distribution. Make sure that the IRA box is checked. Proceed through the 1099-R interview, and eventually you will be asked, "What did you do with the money from {this IRA]". Answer that you did something else with it.

The next screen will ask you "Did [your name] put this money from [IRA name] in a Health Savings Account (HSA)?". Answer "yes" and then some more lines will appear, asking how much of the IRA distribution was put into the HSA. Enter the dollar amount (possibly the entire distribution) and continue your return.

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