Christian Posted February 5, 2013 Report Share Posted February 5, 2013 Every year a new wrinkle ! A married couple who work for the same employer each have an HSA with the company. Along with the employer they each make voluntary contributions to the plan. The plan is part of their Cafe 125 arrangement. If I read the rules correctly they are not entitled to a deduction for their contributions. Is this a correct reading? Their voluntary contributions were within the applicable limits. My reading is their contributions are not deductible and their distributions are not taxed. They are both in their twenties. Quote Link to comment Share on other sites More sharing options...
grandmabee Posted February 5, 2013 Report Share Posted February 5, 2013 doesn't it show up in their W-2 box 12 code W and already off gross wages Quote Link to comment Share on other sites More sharing options...
Christian Posted February 6, 2013 Author Report Share Posted February 6, 2013 It is reported in Box 12c as $2000. The only reduction in gross wages is is 401k contribution. Since it is through their Cafe 125 plan I expect to show no deduction on Form 8889 and show the distribution as non-taxable. I have not yet seen the distribution reporting form as it is in transmit to me by mail. I've not seen this before hence my wanting to be correct in what I enter on their return. Quote Link to comment Share on other sites More sharing options...
grmy2h Posted February 6, 2013 Report Share Posted February 6, 2013 It is not included in gross wages, so there would be no difference in gross vs taxable wages, hence only difference is 401k. Quote Link to comment Share on other sites More sharing options...
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