HSA Tax Resources and Information

As part of the federal income tax return, HSA participants will need to include IRS Form 8889: Health Savings Account to report HSA contributions (those made by the employee and IU) and any distributions from the Health Savings Account (HSA). This form must be filed with Form 1040 or Form 1040 NR. 

Information needed to complete the HSA section of your tax return:

  • 2019 Form W-2 from IU
  • Form 1099-SA (Distributions)
    • provided online by Nyhart in mid to late January
  • Form 5498-SA or a list of 2019 contributions
    • provided online by Nyhart in mid to late January
  • Form 8889: Health Savings Account (HSAs)
  • The receipts/records of qualified health expenses (for reference and recordkeeping)

Common Questions about the Forms

Form 8889

Q. What information do I put in line 2 of Form 8889?

A. Line 2 is where you record any contributions made to your HSA account outside of payroll contributions. For example if you had transferred funds from a personal bank account to your HSA, that contribution amount would be entered in Line 2.

Q. What information do I put in line 9 of Form 8889?

A. Line 9 is where you record any contributions made to your HSA account via payroll contributions.  This information can be found on your W-2, box 12, code W.  This figure will include both the amount that IU contributed to your HSA and the amount you contributed to your HSA through payroll deductions.

Form W-2

Q. Where can I find the HSA contribution information?

A. Box 12, Code W.  This code, labeled Employer Contributions (used in line 9 of Form 8889) includes both IU’s contribution to your account as well as your own contributions through payroll deductions.

Form 1099-SA

Q. Why do I need a Form 1099-SA?

A. The IRS requires Nyhart to issue Form 1099-SA if you made a distribution from your HSA during 2019.  You must report distributions from your HSA on IRS Form 8889.  You must file this form with your annual income tax return. You can find your tax statements online at Nyhart's website by selecting the ‘Accounts’ tab, then selecting ‘Statements’.

Q. What is included in Box 1?

A. Box 1 of the 1099-SA reports the total distributions made from your HSA in 2019.  Distributions include any purchase or withdrawal using HSA funds. If any excess contributions and associated earnings were distributed, they are also included.

Q. What is the distribution code - Box 3?

A. The distribution code represents the particular type of distribution made from the HSA. The most common distribution code is “1”.  This is a normal distribution. A normal distribution means that the funds were withdrawn with the debit card, checks or on-line bill payment. Other codes are for specific types of distributions. These would include a distribution for an excess contribution (2) or a distribution to a beneficiary in the event of a death or disability (3, 4, or 6). A complete list is in the bottom half of your Form 1099-SA.

Q. What is included in Box 2? 

A. Box 2 of Form 1099-SA reports any earnings on excess contributions. This box includes any excess contributions you withdrew from your account, as well as any interest or investment earnings that are attributable to the funds that were withdrawn.

Form 5498-SA

Q. What is form 5498-SA?

A. This form includes all funds contributed to your HSA thus far for 2019. It is available online in January on Nyhart's website under the ‘Accounts’ section, then ‘Statements.’

Q. What if I want to make additional contributions to my HSA for 2019 before the tax deadline?

A. You can continue to make contributions to your HSA up to the IRS annual contribution maximums up until you either file your income taxes for 2019 or until April 15, 2020, whichever is earliest. To do so you can log into Nyhart's website and select the blue ‘Make an HSA Transaction’ button from your homepage.

If you make additional contributions to your account for 2019, a new 5498-SA form will be generated within a few days and will be available online for you to utilize with your tax return.

Helpful Tips

Recordkeeping

Participants should keep all receipts and records for qualified health expenses paid with HSA funds for their own records in case of an IRS audit.

  • These receipts and records do not need to be sent to Nyhart or to the IRS with your tax return.
  • You can attach and store digital images of your receipts utilizing the online ‘Expense Tracker’ feature of your HSA account.

Eligible Expenses

For additional information on qualified health expenses, go to www.irs.gov for the following publications:

  • IRS Publication 502 “Medical and Dental Expenses”
  • IRS Publication 969 “Health Savings Accounts and Other Tax-Favored Health Plans”

For a searchable table of health expenses, go to iu.nyhart.com.

Account Access

If you have forgotten your password to access your account, go to iu.nyhart.com and click on the “Forgot password” link.  From there enter the email address associated with your online Nyhart account, then click Continue. Nyhart will email you a link to a page where you can create a new password.

If you need further assistance contact Nyhart at 800-284-8412 or at .

Excess Contributions

If you were ineligible to make tax-free contributions for any part of 2019 you will need to determine if you made any contributions to your HSA that exceed the pro-rated annual IRS contribution maximum.  To calculate any excess contributions you will need to follow the instructions for tax form 8889. 

Once your excess contribution amount has been identified, you will need to complete a distribution request form, then send the completed form to Nyhart via email to or via fax at 1-888-887-9961.

Nyhart will issue you a check for the excess contributions.  You must have enough in your account for them to be able to issue the FULL excess contribution amount.

When you receive the distribution you can treat it like any other income and deposit it into a regular bank account.  When you file your annual income tax return, you will need to report on Form 8889 that you withdrew the “Excess Contributions” from your account.  Then claim those funds as taxable income and be taxed at your regular income tax rate.

Any excess contributions that are not withdrawn from your account before year end will be subject to a 6% excise tax until removed.

Available Resources

  • Tax Implications section of the FAQs
  • HSA Recordkeeping section of the FAQs
  • Nyhart secure HSA website: iu.nyhart.com
  • Nyhart Customer Service: 800-284-8412 or
  • IU Human Resources: 812-856-1234 or
  • IRS website: www.irs.gov
  • IRS help line: 1-800-Tax-1040

NOTE
For advice about tax matters please consult a personal tax advisor. 
The IRS help line is 800-Tax-1040 (1-800-829-1040).