HDHP Provider Contributions to HSA - Tax Considerations

[dramaman]

I've had a HDHP with HSA for several years off and on. Every month the HDHP provider contributes $125 into my HSA. I've never been entirely sure whether or not this was considered an employer contribution and whether it needed to be included with my own contributions against the annual maximum contribution limits. I've always played it safe and tried to make sure that my own contributions plus the provider contributions never exceeded the annual limit.

Last year, I switched to a HMO because I knew I wanted to have some eye muscle surgery. My insurance switchover took place in late January, such that my HDHP provider contributed $125 for January, 2015. They sent me a 1095-B that shows that they were covering me with the HDHP in January. Turbotax is asking me whether I contributed to my HSA in 2015. I made no contribution. The only contribution was that HDHP $125 deposit made by the insurance provider. I'm trying to determine whether I really need to report that on my taxes or not. Looking at my W2, there is nothing in box 12 with a code of W. If the $125 was considered an employer contribution, wouldn't it say W 125? Thus I'm thinking I don't need to report the $125 and that those monthly contribution do not need to be factored into the annual contribution limitation.

Am I off base here? Has anyone else dealt with this situation?

[a1smith]

Interesting question.  For me, my employer contributions count towards the limit and are documented on the W2.

Here are a few quotes from IRS Publication 969

Contributions to an HSA

Any eligible individual can contribute to an HSA. For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Family members or any other person may also make contributions on behalf of an eligible individual.

Contributions to an HSA must be made in cash. Contributions of stock or property are not allowed.

Employer contributions.   You must reduce the amount you, or any other person, can contribute to your HSA by the amount of any contributions made by your employer that are excludable from your income. This includes amounts contributed to your account by your employer through a cafeteria plan.

My guess is that those contributions count as employer contributions, count towards the limit, and should be documented on your W2.  Maybe there is someone in HR or finance at your company that you can check with.

[abhe8]

We might have the same hdhp. I also get $125 post month to my HSA from my insurance co. My HSA counts that 125 towards the max for the year, because when I messed up and over contributed, the paperwork included the 125 per month contributions.

[Imustacheyouaquestion]

Replying since I am facing the same issue for the 2016 tax year and in case it is useful for anyone else googling this. My plan contributes $750/year in premium pass-throughs and HSA bank reports this as an "employer contribution" and counts it towards the $3350 cap in a summary graph.

[bama89]

how did you log this in your taxes? did it show on your w2? facing a similar issue, with $750 coming from my employer but didn't show on my W2. Do the employer contributions count as a pre tax contribution?

[Imustacheyouaquestion]

It did not show on my W2. I just reported the total of my contributions (plus the $750 pass through) for a total of $3350 in pre-tax contributions.