5329 over-funding error with MFJ both over 55

Forum|Forum|6 years ago
June 24, 2020
10 replies
46 views

Tp and now sp, both over 55. Sp funded $1,000 catch-up in separate HSA account. TP also funded over 55 catch-up in the "primary" HSA account (code w on W2). 2019 total allowed funding for MFJ famly coverage, both 55 is now $9,000 ($7000 normal for family, $1000 catch up for TP, $1000 catch-up for SP)

Software calculates $60 overfunding penalty with 2nd catch-up contribution.

What am I doing wrong?

ProSeries Professional

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Just-Lisa-Now-

Intuit Community Champion

How much was on the W2 ?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

treasur2Author

Level 4

$2,900

rbynaker

Level 13

The rules are quirky. The data entry is even more quirky. I can't tell if you have an actual excess contribution problem or just a software data entry problem so I'll briefly address both.

The "catch up" rules require that the spouse make their own $1K contribution to their own account. Sounds like you already know that. If the taxpayer contributed $9K through the employer though, there is an excess contribution that should be fixed by 7/15/20.

For data entry, you'll have two 8889 forms. In ProSeries they're 8889-T and 8889-S. Mark each form that TP & SP are covered by a family plan and the months. Then down below there's a box to "allocate" the total contribution limit between TP and SP.

Rick

qbteachmt

Level 15

There is no separate Catchup amount. They are treated as one unit, so there seems to be an extra $1,000, which is 6% penalty, which is $60.

There also is no such thing as a Joint HSA. The Account is owned by the account holder, which is typically set up per the insurance policy which qualifies.

Try this topic to see if it helps you understand:

https://www.peoplekeep.com/blog/how-hsa-contribution-limits-work-for-spouses

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