The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/money-contributed-to-an-hsa-is-taxable-income-29110269.aspx

Subject:  Re: HDHP and HSA Question Date:  2/16/2011  9:06 PM
Author:  foo1bar Number:  112311 of 121585

Money contributed to an HSA is taxable income until it is spent on allowable medical expenses.

???
Money contributed to an HSA is not taxable income.

"
* You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040.
* Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income.
"
http://www.irs.gov/publications/p969/ar02.html

(If I'm wrong on this - I'll be surprised - they can be like a pseudo-retirement account)


My question for the OP:
"...not just the employer subsidized part, but that plus my contributions."

Is it really your contributions?
Or is it contribution made by your employer and they reduced your pay by that amount?
(My employer I believe does the latter - it's almost the same, but it really isn't a contribution by *ME* - which has meant I have at least 1 time answered incorrectly the question asked by the tax software because I wasn't quite understanding it.)

Then, when I get to deductions, it asks how much of the HSA I used, I give the number.
that shouldn't change your liability.
Unless you had it as income from being withdrawn and then it took a number of questions before they got to it as being used for medical purposes. (but I'd think that'd all get entered at one time when entering the tax form from the bank with the HSA)
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us