In article <2Z2ol.5005$PE4.431[at]nlpi061.nbdc.sbc.com> ,
Mark Bole <makbo[at]pacbell.net> wrote:

I did not get a 1099-SA at all for 2008. I didn't use the money for any
medical expenses, or withdraw the excess until 2009.

If I should have gotten one anyway, I can check with my Credit Union
(with whom I have the HSA)?

Bonnie



- quote -

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

D. Stussy wrote:
- quote -

Form 1099-SA (not HSA) file from IRS states the following:

"Due dates. Furnish Copy B of this form to the
recipient by February 2, 2009. File Copy A of this form with the IRS by
March 2, 2009. If you file electronically, the due date is
March 31, 2009."

Believe me, I looked it up before I posted.

There does not seem to be the same fleshed-out set of codes and such to
handle "distributions" (return of excess contributions) that occur
following the tax year for which the amount applies.

Or to put it another way, since the OP took the money out in 2009, what
do you expect would show up on her 2008 1099-SA form, whenever it is
received? Is there any way to avoid an amendment or extension of the
tax return in this case, short of writing a statement to explain
everything and then ignoring the 1099-SA for 2009?

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <%9Unl.11066$hc1.4854[at]flpi150.ffdc.sbc.com> ,
Mark Bole <makbo[at]pacbell.net> wrote:

- quote -


My high deductible Health plan began Jan 1 2008. However, I didn't open
and fund the HSA until Feb. My impression from reading the IRS HSA
Publication was that the HSA is not retro-active. The HSA would only
take effect at the time I opened it and deposited money. For example, I
could not use the HSA for medical expenses in January. Is that not
correct? So I'm only qualified for February??

It is incredibly confusing. Reading that Publication, it seems like the
IRS contradicts itself sometimes.

Thanks for your help.

Bonnie

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Bonnie Forman wrote:

- quote -

If you worked on that job in both Jan and Feb (as you stated in your
original post), you were "qualiried" for *both* Jamnuary & February, no
matter when you put money into the HSA account.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Mark Bole" <makbo[at]pacbell.net> wrote in message
news:UAFnl.4938$PE4.2835[at]nlpi061.nbdc.sbc.com...
- quote -

Why would an "updated" 1099-HSA be needed? The document isn't due until
May 31.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Bonnie Forman wrote:

- quote -

You actually have up to April 15th of the following year to contribute
to an HSA, so *when* you contribute the money does not determine your
eligibility (although your employer plan might have extra administrative
rules regarding payroll deductions into an HSA).


- quote -

So it sounds like you had a modest amount of unreimbursed medical
expenses that will not give you any tax benefit, this is quite common.

- quote -

I'm guessing you will get a 2009 1099-SA a year from now. If you have
already accounted for everything properly on the 2008 return, you should
be able to simply attach a brief explanation to your return for 2009.
Although HSA's are very similar to IRA's, it does not appear that the
information forms for HSA's support the variety of distribution codes
available for IRA's to correctly report multi-year transactions.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Thank you.

I just worked form 8889 from the IRS website. I basically need to
withdraw whatever is left in my HSA (it turns out I was only qualified
for one month since I didn't deposit the money until Feb, and was gone
from that job on Feb 25th).

So I need to claim as income the interest I earned for the rest of 2008
on that account, and the initial deposit I made will not be taxed (since
it already was).

Next year's taxes may be messy however, because in January of this year
I used some of the money (more than I was allowed because I was only
eligible for one month) for medical expenses.

I guess the important thing is pay taxes on the earned interest. Maybe
the rest won't matter - except for how to explain it to the IRS!

Thanks again,

Bonnie


In article <UAFnl.4938$PE4.2835[at]nlpi061.nbdc.sbc.com> ,
Mark Bole <makbo[at]pacbell.net> wrote:

- quote -

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Bonnie Forman wrote:
- quote -

You will need to work through Form 8889 and instructions on page 5
regarding excess contributions, these are downloadable or viewable at
www.irs.gov. If you withdraw the excess contribution (which you
calculate as previously discussed) before the due date of your return
including extensions, and you do not try to deduct it from income, it
simply does not get shown as an amount contributed on Form 8889,
therefore it does not show as an excess contribution.

Try to get an updated 1099-SA for 2008 if you can, but it may not be
until the end of the 2009 tax year that you get one. Form 1099-SA has a
box 2 amount for earnings on excess contributions included in box 1, and
a code 2 for same. You include this as "Other income" on your tax return
(Form 1040 Line 21). You should include a statement explaining the
amounts you used if different from the 1099-SA that was issued.

According to the instructions, the earnings on the amount withdrawn are
calculated using the same procedure as applies to IRA withdrawals of
contributions.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

According to TT I was allowed to have a $633.00 for the two months I was
qualified.

My medical expenses were less than that. I'm not concerned about.

My question is about the amount that I had to withdraw (this year) as an
'excessive' contribution. And what about the interest I earned on that
amount?

Do I report that now? Do I report that on next year's taxes when I get a
1099 (or whatever the statement is regarding my HSA).?? Is there a
penalty of some kind?

Bonnie




In article <Jqpnl.17286$yr3.16645[at]nlpi068.nbdc.sbc.com> ,
Mark Bole <makbo[at]pacbell.net> wrote:



- quote -

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

[Second reply - meant to be additional to the first]

"Bonnie Forman" <bons77[at]pacbell.net> wrote in message
news:bons77-F5509D.21492018022009[at]news.sf.sbcglobal.net...
- quote -

What day did you leave in March? If March 2 or later, then March counts as
a month you may contribute. Only if you left on March 1 or earlier does
the month not count. If there was a gap where you received unemployment
compensation, other months may count.

Eligibility status is determined for a month based on the first day of the
month.

- quote -

Excess contribution = $2,900.00 * (non-qualfied months / 12).

- quote -

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Bonnie Forman wrote:
- quote -

You mean "no *employer* contribution", right? That is how you were able
to contribute the max all at once, even though you changed insurance
plans early in the year.

- quote -

But some other company might have. HSA's and the HDHP's that go with
them are designed to *not* depend on the employer.

- quote -

Sounds right.

- quote -

How much did you withdraw? What were your medical expenses?


- quote -

Qualified distributions from an HSA are not taxable. The fact you did
not receive a statement is probably not an issue, if the facts are
documented.

- quote -

You're welcome.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I have read the iRS info on HSAs and am now even more confused (what a
surprise)

I will try to explain this as simply as possible.

In Feb 2008 I opened and funded with $2900.00 an HSA. No employee
contribution. My High Deductible health plan began on Jan 1.

In March, I left that company and my new company did not offer a High
Deductible Plan.

I did not know that I would be considered not eligible for the tax
benefits of an HSA for the rest of 2008.

Now it's 2009, and Turbo Tax is telling me that I have excess
contributions, because I was only eligible for Jan/Feb of 2008.

So I went and withdrew what I thought was the correct amount (but
probably wasn't), because TT says if I withdraw it before I pay my 2008
taxes I will not have to pay an additional penalty tax (?).

Because I withdrew the excess in 2009, I did not receive a statement
from the bank, and have no idea how to figure out how much I should have
withdrawn (excess), AND how to let the IRS know I have withdrawn it?

I did use some of the money in 2009 for medical expenses.

Anyone an expert at HSAs?

TIA

Bonnie

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >