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HSA Contributions between Retirment & Medicare

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(@tnmusic)
Active Member
Joined: 1 year ago
Posts: 6
Topic starter  

New user here. One quirk I had was figuring out a way to contribute to an HSA between retirement and the onset of Medicare. I added a fake income stream with 100% going to the HSA plus a scheduled account withdrawal to match, which mostly works... except that it appears to apply Medicare tax to the "income", even though the full amount is contributed to the HSA (?). It's an inconsequential amount, but I didn't think HSA contributions were taxed at all? Thank you!



   
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(@cstone)
Site Admin Admin
Joined: 4 years ago
Posts: 123
 
Robert, I vaguely remember discussing with Stuart that some users created Employment Income items with no Annual Gross Wages, but specify IRA or HSA contributions and whatever start year and annual increase they want.
I think in your example, you added Annual Gross Income which triggers payroll tax, tho the HSA contribution is exempt from Federal income tax.
Just as we have Scheduled Withdrawals, an enhancement would be to have Scheduled Contributions that would support just what you are looking for.

This post was modified 12 months ago 2 times by Charlie Stone

   
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(@tnmusic)
Active Member
Joined: 1 year ago
Posts: 6
Topic starter  

Thank you for clarifying and pointing me in the right direction. I tried it w/ zero income and a contribution and it did work. I would have never guessed doing it like that and agree that a "scheduled contribution" or more generally a "scheduled transfer between two accounts" would be more obvious to a newcomer. Thanks again.



   
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(@cedyathome)
Eminent Member
Joined: 2 years ago
Posts: 17
 

I added the HSA contribution to the Build " Income Employment Income" "$ Personal Contributions to Health Savings Accounts". It works....

But ..

In the Tax Forms & Bracket's report, it shows a negative number (that matches the HSA contribution) in the 1040 Line 1, but HSA contributions should show up on line 10 of the 1040.

I haven't looked enough to see if this affects any other aspect of the plan.



   
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