I don't get many of these HSA's and I was wondering if on the W-2 in box 12 shouldn't just the employer's contribution be listed with a code W? It could be I'm missing something it seems to me I should be able to this to zero out with only amount of TP contribution being an above the line deduction. I would apreciate any insight.
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You are correct in that the W-2 in box 12 should be just the employer's contribution and coded with W. You still need to know how much the Employee put in and combined amounts of Employer and Employee's must be taken into account to figure if too much has been contributed.
Where I'm having trouble is confused employees who don't have any idea what is going on. We have two major businesses that have started these for their employees and also are can put flex plan dollars into the HSA. The plan is set up at two local banks where employees make extra contributions as they wish but only the employers portion shows on the W-2.
If I am understanding this correct I need to figure how much was put in pre-tax - no deduction- and how much the employee put in out of their pocket and will be an above the line deduction. Between the three contributions then I must make sure they did not contribute too much or apply the penalty. -
Thanks
Jesse, I know how much the employee has contributed because they do it through payroll withholding. I think what may be happening is this is the first year for this employer and they may have their wires crossed a little bit. This W-2 is showing the sum of all contributions. Like I said before I don't see many of these but I have a feeling they are going to become more common. Again thank you so much.Comment
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