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HSA Limit

RichardS77
Level 4

I  have a client that is clearly over 55 (she's 60) and is entitled to the extra $1,000 HSA contribution bringing the total to $4,550.  (See IRS publication page 6)  For some reason Pro Series is assessing a penalty on form 5329 and should not.  Why is that and how do I correct it..

Thanks In advance for your help.

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Just-Lisa-Now-
Level 15
Level 15

And youve got a W2 with a Code W on Box 12 on it with an amount that's 4550 or less on it?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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14 Comments 14
Just-Lisa-Now-
Level 15
Level 15
did you go to the 8889 and check the box for Self in the Line 3 Smart worksheet below Line 2?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
RichardS77
Level 4

Yes, and when I check "Self-only" it populates with $3,550.

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Just-Lisa-Now-
Level 15
Level 15
scroll down the screen a bit more, Line 3 should have the 4550 on it...

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Just-Lisa-Now-
Level 15
Level 15

were all the contributions made through payroll?  If so, all you need to mark is that Self Box in the Smart Worksheet on the 8889, dont enter anything else on it.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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RichardS77
Level 4

line 3 does but the 12 months above in  the worksheet populates with 3550

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Just-Lisa-Now-
Level 15
Level 15
thats correct...do you still have a 5329 penalty?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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RichardS77
Level 4

yes

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Just-Lisa-Now-
Level 15
Level 15

So it was contributions through payroll, right?

This is what the 8889 should look like.  If youre getting a penalty, youve got some other entry mucking stuff up somewhere.

8889.png


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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BobKamman
Level 15

Try deleting and re-entering her date of birth.  And make sure it's before 1965.  

RichardS77
Level 4

yes, that's what it looks like.

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Just-Lisa-Now-
Level 15
Level 15

And youve got a W2 with a Code W on Box 12 on it with an amount that's 4550 or less on it?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
RichardS77
Level 4

did that here birth date is 10/04/60

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BobKamman
Level 15

Then maybe delete the 8889, and the 5329 while you're at it, and try opening them again?  Maybe delete the W-2 entry for HSA contributions also.  

RichardS77
Level 4

I got support on the line and had to go back delete the "W" from w-2 and remove 8879 and then reenter the the "w" on the w-2 and it fixed it.

Thanks!!