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IRS Form 8889 is used to report HSA contributions, distributions and your tax deductions. You will complete this form using IRS Forms 1099-SA and 5498-SA provided by HSA Bank.
Employers can contribute to HSAs in one of two ways: either with or without a Section 125 plan. An IRS Section 125 plan is sometimes called a cafeteria plan. These programs have menus of benefits that employees can choose from, the same way youd choose items at a cafeteria.
Go to .irs.gov/Form8889 for instructions and the latest information. Name(s) shown on Form 1040, 1040-SR, or 1040-NR Social security number of HSA beneficiary.
Employer contributions (including an employees contribution through a cafeteria plan) are allowed to be made to an employees HSA. Generally, employer contributions are excluded from an employees income. Employer contributions are reported on Form W-2, Box 12 using code W.
payroll deductions for HSA and employer matching contributions for the same tax year are to be reported in box 12 code w on that years w-2.
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Use Form 8889 to: Report health savings account (HSA) contributions (including those made on your behalf and employer contributions), Figure your HSA deduction, Report distributions from HSAs, and. Figure amounts you must include in income and additional tax you may owe if you fail to be an eligible individual.
Pre-tax - HSA contributions are pre-tax if its made pursuant through a cafeteria plan (Section 125 plan). The HSA amount will then be reported on Form W-2 in Box 12 with a W code. After-tax - If the contributions are deducted from the employees payroll after the taxes have been calculated.
For example, while contributions to Health Savings Arrangements (HSA) are not to be reported in Box 12, Code DD, certain HSA contributions are reported in Box 12, Code W (see General Instructions for Forms W-2 and W-3PDF).

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