Form 1099-R and HSA transfer
In 22017 I did a Roth conversion and transferred $7500 from my IRA Rollover to an HSA account. One such transfer to an HSA is allowed in one’s lifetime.
The custodian of my IRA issued a 1099-R which combines both the amount of the Roth conversion and the HSA transfer. My HSA account administrator does not issue any document to offset the $7500 transfer from the IRA.
What should I do in filing my tax return so the transfer is not viewed as a taxable event ?
Permalink Submitted by Alan - IRA critic on Fri, 2018-02-23 19:13
You should complete Form 8606 as usual for the conversion and in doing so do NOT include the HSA portion on line 7. The entire 1099R Box 1 amount goes on line 15a of Form 1040, and only the amount from the 8606 goes on 15b. Enter “HFD” next to 15b. Of course, tax programs may vary with respect to entry instructions, but the final Form should appear as stated here. The IRS should conclude that the amount not shown on Form 8606 is the HFD,