HSA payroll deductions reported on 8889?

[David]

TP's employer contributed $7,550 to his HSA family plan. Employee also had HSA deductions from his paychecks for $6,350. TP is over 55 years old.

Are only the employer contributions reported on form 8889? The employee's HSA payroll deductions aren't reported on line 2 of Form 8889 are they? The instructions appear to state that contributions through a cafeteria plan are not included on line 2.

Am I understanding this correctly? It seems that the total employer and employee contributions are $13,900 which is over the family contribution limit of $6,550.

Thanks.

[David]

I think I misread the HSA information from the TP's W-2. The deductions from his gross to taxable wages includes $6,350 Cafeteria 125 HSA. The box 12 code W amount is $7,550.

I'm now thinking that the code W includes both the employee's $6,350 contributions and the employer's $1,200 contribution which total $7,550.

Am I clear on this now? Or is my brain getting tired? :-)

[jklcpa]

Box 12, code W includes employer contributions AND contributions the employee elected to contribute to the HSA through a cafeteria plan.  That amount coded "W" does not create a deduction on the return because the employee has already received the tax benefit via reduced federal taxable wages in box 1 of the W-2.  If that amount isn't at the maximum, it is a limiting factor in how much additional the employee may be allowed to contribute to the HSA though.

 

Your client's HSA has received the maximum contribution allowed for the year.  It appears that you are simply misinterpreting the W-2.

[jklcpa]

David, to add to the above, those #s make sense under provisions of the ACA (see below for the $1200 family limit) and you said that the employee put in 6350. That amount along with the employer's 1200 total to the 7550 shown on the W-2.
 
Maybe this will clarify:
 

Small Employer Contributions to HRAs and HSAs under the ACA,  small employer group health plans must mmet the actuarial (AV) of a metallic level (platinum, gold, silver or bronze) plan. One of the items considered in calculating the AV is the employer contribution tward an HRA or HSA.

Since the employer contribution is entered into the AV calculator, plans with HRA or HSA contribution amounts must be predetermined and are therefore pre-set for each designated HRA or HSA compatible option.
If the designated employer contribution to an HRA or HSA compatible plan for an individual is $600, the employer contribution to such a family plan is $1,200 (2 x $600).

[David]

Thanks, Judy. I appreciate your help.