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Financial Planning / Tax Strategies


Subject:  Re: 1099-MISC & HSA Date:  4/15/2012  12:36 PM
Author:  aj485 Number:  116029 of 127536

It looks to me as though the IRS wants to know the employER contribution to an employees HSA account on that Form.

Easter knows the employer contribution amount, but apparently it was not reported on the W2.

Are you and Easter completely sure that the account is an HSA (Health Savings Account)? Employers can also contribute to an HRA (Health Reimbursement Account), and the terminology can be confused easily, since HRAs also help people save money on healthcare costs, so they can be mistakenly referred to as HSAs. And, from page 17 of IRS Pub 969 :

Unlike HSAs or Archer MSAs which must be reported on Form 1040 or Form 1040NR, there are no reporting requirements for HRAs on your income tax return.

One quick question can help figure this issue out - Was the medical insurance plan for 2011 a qualified HDHP (High Deductible Health Plan)? If not, the account isn't an HSA, since HSAs can only be set up when used in conjunction with HDHPs.

Pub 969 has details about HSAs, HRAs and HDHPs that Easter might want to take a look at so that she can confirm that the correct terminology is being used.

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