HSA Tax Information

How much may I contribute to my HSA for 2008 and 2009?

In 2008 you may contribute up to $2,900 as an individual or $5,800 for a family annually. Employees who are 55 or over by 12/31/2008 can contribute an additional $900 in 2008 under the catch-up provision.

In 2009 you may contribute up to $3,000 as an individual or $5,950 for a family annually. Employees who are 55 or over by 12/31/2009 can contribute an additional 1,0900 in 2009 under the catch-up provision.

What is the cut-off date for contributing to my HSA for 2008?

You may contribute to your 2008 HSA until April 15, 2009.

Is there a penalty for over contributing to the HSA?

Yes, you must pay income tax plus a 6% tax penalty on the excess contribution.

What tax forms will I get? What is reported to the IRS?

Two tax forms will be sent to you and to the IRS. The first is Form 1099-SA. This form is sent no later than January 31. Form 1099-SA tells you what distributions have been made from your health savings account during the calendar year. The amount in Box 1 of your 1099-SA will be reported on Line 14a of Form 8889. (Form 8889 is required when filing your taxes if you have a health savings account).

The second form sent to you is Form 5498-SA. This form is sent out no later than May 15, but definitely after the tax filing deadline of April 15. Form 5498-SA cannot be sent any earlier because taxpayers have until April 15 to make contributions to the prior year’s HSA. This form included ALL contributions made between January 1 of the reportable tax year (e.g. 2007) and April 15 of the following tax year (e.g. 2008). Box 1 will be blank unless you have an MSA. Box 2 will have all the contributions to your HSA made in 2007, including any contributions made for 2006 in 2007. Do not report this on your Form 8889. Box 3 has the HSA contributions made in 2008 for 2007. Note that both boxes 2 and 3 may, or may not, match the amount reported on line 2 of Form 8889.

What tax forms do I need to complete?

All taxpayers who have a health savings account must complete Form 8889 if:

they, or someone on their behalf, made contributions for 2007 to their HSA.
they received any HSA distributions in 2007.
they failed to be an eligible individual during the testing period.
they acquired an interest in an HSA because of the death of the account beneficiary.

Where can I find Tax forms?

Form 8889 can be found here.
Instructions for Form 8889 can be found here.