HSA Tax Resources and Information
As part of the federal income tax return, HSA participants will need to include IRS Form 8889: Health Savings Account to report HSA contributions (those made by the employee and IU) and any distributions from the Health Savings Account (HSA). This form must be filed with Form 1040 or Form 1040 NR.
Information needed to complete the HSA section of the 2017 tax return:
- 2017 Form W-2 from IU (available on the Employee Center in January)
- Form 1099-SA (Distributions)
- provided online by Nyhart in mid to late January
- Form 5498-SA or a listing of 2017 contributions
- provided online by Nyhart in mid to late January
- Form 8889: Health Savings Account (PDF)
- Instructions for completing Form 8889 (PDF)
- The receipts/records of qualified health expenses (for reference and recordkeeping)
Access the ‘Instructions for Form 8889’ for directions on how to complete your income tax Form 8889.
Common questions about the forms
Q. What information do I put in line 2 of Form 8889?
A. Line 2 is where you record any contributions made to your HSA account outside of payroll contributions. For example if you had transferred funds from a personal bank account to your HSA, that contribution amount would be entered in Line 2.
Q. What information do I put in line 9 of Form 8889?
A. Line 9 is where you record any contributions made to your HSA account via payroll contributions. This information can be found on your W-2, box 12, code W. This figure will include both the amount that IU contributed to your HSA and the amount you contributed to your HSA through payroll deductions.
Q. Where can I find the HSA contribution information?
A. Box 12, Code W. This code, labeled Employer Contributions (used in line 9 of Form 8889) includes both IU’s contribution to your account as well as your own contributions through payroll deductions.
Q. Why do I need a Form 1099-SA?
A. The IRS requires Nyhart to issue Form 1099-SA if you made a distribution from your HSA during 2017. You must report distributions from your HSA on IRS Form 8889. You must file this form with your annual income tax return. You can find your tax statements online at Nyhart's web site under ’Statements & Notifications’.
Q. What is included in Box 1?
A. Box 1 of the 1099-SA reports the total distributions made from your HSA in 2017. Distributions include any purchase or withdrawal using HSA funds. If any excess contributions and associated earnings were distributed, they are also included.
Q. What is the distribution code - Box 3?
A. The distribution code represents the particular type of distribution made from the HSA. The most common distribution code is “1”. This is a normal distribution. A normal distribution means that the funds were withdrawn with the debit card, checks or on-line bill payment. Other codes are for specific types of distributions. These would include a distribution for an excess contribution (2) or a distribution to a beneficiary in the event of a death or disability (3, 4, or 6). A complete list is in the bottom half of your Form 1099-SA.
Q. What is included in Box 2?
A. Box 2 of Form 1099-SA reports any earnings on excess contributions. This box includes any excess contributions you withdrew from your account, as well as any interest or investment earnings that are attributable to the funds that were withdrawn.
Q. What is form 5498-SA?
A.This form includes all funds contributed to your HSA thus far for 2017. It is available online in January on Nyhart's web site under ’Statements & Notifications’.
Q. What if I want to make additional contributions to my HSA for 2017 before the tax deadline?
A. You can continue to make contributions to your HSA up to the IRS annual contribution maximums up until you either file your income taxes for 2017 or until April 15, 2018, whichever is earliest. To do so you can click on the short cut ‘Make HSA Transaction’ in the left hand column of the home page on Nyhart’s website once you have logged into your account.
If you make additional contributions to your account for 2017, a new 5498-SA form will be generated within a few days and will be available online for you to utilize with your tax return.
Participants should keep all receipts and records for qualified health expenses paid with HSA funds for their own records in case of an IRS audit.
- These receipts and records do not need to be sent to Nyhart or to the IRS with your tax return.
- You can attach and store digital images of your receipts utilizing the online ‘Expense Tracker’ feature of your HSA account.
For additional information on qualified health expenses, go to www.irs.gov for the following publications:
- IRS Publication 502 “Medical and Dental Expenses”
- IRS Publication 969 “Health Savings Accounts and Other Tax-Favored Health Plans”
If you have forgotten your login or password for accessing your account online, go online to iu.nyhart.com and click on the “Forgot your password” link. From there you can have a temporary password emailed to your IU email address listed in the Employee Center of One.IU. If you need further assistance contact Nyhart at 800-284-8412 or at .
- Tax Implications section of the FAQs
- HSA Recordkeeping section of the FAQs
- Nyhart secure HSA website: iu.nyhart.com
- Nyhart Customer Service: 800-284-8412 or
- IU Human Resources: 812-856-1234 or
- IRS website: www.irs.gov
- IRS help line: 1-800-Tax-1040
For advice about tax matters please consult a personal tax advisor.
The IRS help line is 800-Tax-1040 (1-800-829-1040).