Health Savings Accounts (HSA)
I noticed that there has been some discussion regarding HSAs specifically the need for a new account type. I have had two HSAs. They are a little odd in that some transactions need to be on tax reports but other need to be excluded.
I have gotten around this by coding the HSA Cash Account as not Tax Deferred and the HSA Investment Account as Tax Deferred.
Then, in the HSA Cash Account, I set up new income categories without tax categories.
The end result of this is that for tax reporting, the HSA Investment Account is excluded, and from the HSA Cash Account, only the appropriate cash flow items get picked up on tax reports and income is excluded.
I wonder if other users have found similar ways to code and work with HSAs in Quicken?
Comments
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I am surprised about the differences in tax treatment you describe. Generally contributions to an HSA are pre-tax and distributions to pay for medical expenses are also not taxed.
When I had separate banking and investment accounts for my HSA, I set up both accounts as tax deferred and the investing account as a Roth IRA. My contributions went to the banking account as pre-tax deductions in the Paycheck Wizard.
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@Jim_Harman yes contributions and distributions are not taxed, but they need to show up on tax reports because they are reported on Federal Tax Forms. Distributions from the HSA need to be accounted for and verified. Contributions to the HSA need to be accounted for and verified. At the end of the year, I compare the Quicken totals for these amounts to my HSA Statements and to the Forms 5498-SA and 1099-SA. I want to make sure these amount reconcile before I complete my tax forms.
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