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Should "Year end HSA value" include investments?

Forum|Forum|7 years ago
June 5, 2019
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Let's say that at the end of the tax year, my HSA account had a cash balance of $2000 and an investment balance of $10000. Form 5498-SA has a value of $2000 in box 5. In form 5329-T, should I put $2000 or $12000?

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Best answer by BillM223

The reason for this question is to determine if you should be assessed on excess tax of 6% on your excess contribution or on your HSA value (you get assessed on the smaller of the two).

It would make no sense to report only the cash value here.

I see in the literature that some companies might split the cash and the investments into two accounts, hence two 5498-SAs.

But I see that one tax professional who asked his HSA plan advisor about this suddenly received a corrected 5498-SA reporting the total amount on the corrected version.

So, use the actual value (cash and non-cash) when asked in TurboTax, and also call your HSA plan administrator and ask them why they are not reporting the fair market value of the whole HSA.

B

BillM223Answer

The reason for this question is to determine if you should be assessed on excess tax of 6% on your excess contribution or on your HSA value (you get assessed on the smaller of the two).

It would make no sense to report only the cash value here.

I see in the literature that some companies might split the cash and the investments into two accounts, hence two 5498-SAs.

But I see that one tax professional who asked his HSA plan advisor about this suddenly received a corrected 5498-SA reporting the total amount on the corrected version.

So, use the actual value (cash and non-cash) when asked in TurboTax, and also call your HSA plan administrator and ask them why they are not reporting the fair market value of the whole HSA.

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