Why is Lacerte calculating an Excess HSA Contribution?

Forum|Forum|3 years ago
March 28, 2023
2 replies
16 views

Folks:

Lacerte is telling me that I have an excess HSA contribution--but I don't think I do.

Type of coverage is 2 (family)

HSA contribution amount is $6,000.

Value of HSA at yearend is $4,904.

Total HSA distribution are $2,040, all of which was qualified.

So . . . there shouldn't be an excess contribution, right?

Lacerte Tax

This topic has been closed for replies.

Best answer by msindc1

Aha! You've found it! Code W is EMPLOYER contribution to HSA, not EMPLOYEE. So I basically had $12,000 going into the HSA. Thank you!

PhoebeRoberts

Intuit Community Champion

Any Box 12 Code W amounts on W-2s? What does your Form 8889 look like?

M

msindc1AuthorAnswer

Level 5

Aha! You've found it! Code W is EMPLOYER contribution to HSA, not EMPLOYEE. So I basically had $12,000 going into the HSA. Thank you!

qbteachmt

Level 15

A Note that should help: Payroll deductions that are pre-tax employee HSA contributions are treated as Employer contributions. That's because they already avoided tax. Treating them as Employee contributions is treating them as if they are tax deductible, again. That's a common error.

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