HSA contributions - Paid by employer

[mircpa]

Hello

I got a question regarding HSA contribution paid by employer on behalf of 2% shareholder-employee. My understanding is contributions along with health insurance premiums paid by employer gets added up in officers compensation wages amount. Employee gets health insurance payment deduction on line 29 of 1040 AND HSA contribution deduction on line 25 (Even though paid by employer). I went thru IRS notice 2008-1 & 2005-8.

Notice 2005-8 says "The 2-percent shareholder-employee, if an eligible individual as defined in section 223©(1), is entitled under sections 223(a) and 62(a)(19) to deduct the amount of the contributions made to the 2-percent shareholder-employee’s HSA during the taxable year as an adjustment to gross income on his or her federal income tax return. See Notice 2004-2, Q&A 19, 2004-2 I.R.B. 269, for employment tax rules for employer contributions to HSAs of employees other than 2-percent shareholder-employees.

 

Can someone confirm me if employee is eligible to claim HSA contribution deduction.

[Lee B]

Look at Line 2, Part I of Form 8889 and your question will be answered.

 

It says . . . . . ."Do not include employer contributions . . . . . .