Need help with HSA

[Kram BergGold]

Self Employed client started a high deductible medical insurance plan in 2010. It has an HSA but she put no money into it. She has an article that says the HSA like an IRA can be funded for 2010 up to April 15, 2011. Is this true, and would she $6500 into it to get the tax deduction and then immediatly take it out to pay $6500 of 2010 medical bills she paid?

[veritas]

You said

"It has an HSA"? Not sure what you mean.

The individiual can contribute up to 4-15-2011 for 2010.

See page 13-1 in TTB for the maximum contribution allowed.

Only expenses incurred after the Health Savings Account has been established can be used for reimbursement.

Section 29 in TTB has an extensive explanation about HSAs.

[New York Enrolled Agent]

IRS Notice 2004-2

Q-21. When may HSA contributions be made? Is there a deadline for contributions to an HSA for a taxable year?

A-21. Contributions for the taxable year can be made in one or more payments, at the convenience of the individual or the employer, at any time prior to the time prescribed by law (without extensions) for filing the eligible individual's federal income tax return for that year, but not before the beginning of that year. For calendar year taxpayers, the deadline for contributions to an HSA is generally April 15 following the year for which the contributions are made. Although the annual contribution is determined monthly, the maximum contribution may be made on the first day of the year.

[Kram BergGold]

Thanks and a follow up?

Veritas, you must be using a business TTB because my Deluxe Edition stops at Section 25. However I kind of got the gist of things from each of you and did some hunting on my own and I think I understand. Do you know, if the plan was created early in 2010 and they fund it now and submit the receipts will the 1099 HSA they get be a 2010 or 2011 one?

[Jesse]

I believe just like an IRA, when they contribute the money they need to let the financial institution know which year they want the funds to be designated to.

[okie1tax]

Ttb Hsa

Its Tab 13, Page 29