Permalink Submitted by Alan Spross on Tue, 2008-04-08 02:09
Not sure if I have your question right, but the maximum qualified HSA funding distribution that is done in 2008 is based on the coverage status for the actual month of the transfer. It would reduce the 2008 permitted contribution, not 2007, and should not affect the 2007 tax return.
There is also a 12 month testing period for the 12 months following the HSA transfer. If that period is not met, the appropriate portion of the transfer must be included in income.
Hello Alan,
Not sure if I understand this question either, but your answer seems to contradict one you gave me a couple weeks ago…
>
You informed I could transfer IRA to HSA in 2008 based on HDHP catchup amount for my wife as a 2007 contribution. Since this transfer occurs in 2008, it would not be covered by IRA year-end documentation for 2007, and so would go into our 2008 tax filing. However the qualification of the contribution would be based on 2007 HDHP participation. I had no intent to use up any of the 2008 HDHP qualification with that transfer.
But at that time, I forgot to ask this question: Can the deadline for making a 2007 HSA contribution be extended beyond 4/15/08 by filing for a tax filing extension (form 4868)…?
I think I read that somewhere, but now cannot find it.
(I also posted this question separtely a few minutes ago… before seeing this post.)
Permalink Submitted by Alan Spross on Tue, 2008-04-08 02:09
Not sure if I have your question right, but the maximum qualified HSA funding distribution that is done in 2008 is based on the coverage status for the actual month of the transfer. It would reduce the 2008 permitted contribution, not 2007, and should not affect the 2007 tax return.
There is also a 12 month testing period for the 12 months following the HSA transfer. If that period is not met, the appropriate portion of the transfer must be included in income.
Permalink Submitted by [email protected] on Tue, 2008-04-08 23:52
Hello Alan,
Not sure if I understand this question either, but your answer seems to contradict one you gave me a couple weeks ago…
>
You informed I could transfer IRA to HSA in 2008 based on HDHP catchup amount for my wife as a 2007 contribution. Since this transfer occurs in 2008, it would not be covered by IRA year-end documentation for 2007, and so would go into our 2008 tax filing. However the qualification of the contribution would be based on 2007 HDHP participation. I had no intent to use up any of the 2008 HDHP qualification with that transfer.
But at that time, I forgot to ask this question: Can the deadline for making a 2007 HSA contribution be extended beyond 4/15/08 by filing for a tax filing extension (form 4868)…?
I think I read that somewhere, but now cannot find it.
(I also posted this question separtely a few minutes ago… before seeing this post.)
Thanks..!