Is interest on a Future Health Account taxable in California?

If your Future Health Account is treated the same as a Health Savings Account, then the interest is taxable in California.

Contact your employer or the account holder for clarification if needed.

California does not conform to federal legislation that enacted HSAs beginning January 1, 2004. Federal CAA, 2023 – The CAA, 2023, was enacted on December 29, 2022, and it includes the federal Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act of 2022. See this FTB webpage for more information.

If you entered Forms 1099-SA in the Federal section, the California return will make the needed changes and ask questions if needed.