HSA Tax Resources and Information

Each year, Health Savings Account (HSA) participants must submit IRS Form 8889: Health Savings Account with their federal tax return. This form reports HSA contributions made by you and the university, as well as any distributions made from your account. This form must be filed with Form 1040 or Form 1040 NR.

You will need the following information to complete the HSA section of your tax return:

  • 2021 Form W-2 from IU
  • Form 1099-SA (Distributions)
    • provided online by Nyhart by the end of January
  • Form 5498-SA or a list of 2021 contributions
    • provided online by Nyhart in mid-February
  • Form 8889: Health Savings Account (HSAs)
  • 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 the tax year. You must report distributions from your HSA on IRS Form 8889 and submit it with your annual income tax return. You can find your tax statements on Nyhart’s website by selecting Your Balances, Accounts, then Statements.

Q. What is included in Box 1?

A. Box 1 of the 1099-SA reports the total distributions made from your HSA during the tax year. 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 your HSA. The most common distribution code is “1”, which indicates a normal distribution. A normal distribution means that the funds were withdrawn with your IU Benefit Card, with a check, or through online bill payment. Other codes are for specific types of distributions such as a distribution for an excess contribution (2) or a distribution to a beneficiary in the event of death or disability (3, 4, or 6). A complete list is located on 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 contributions to your HSA thus far for 2021. It is available online by mid-February on Nyhart’s website by selecting Your Balances, Accounts, then Statements.

Q. What if I want to make additional contributions to my HSA for 2021 before the tax deadline?

A. You can continue to make contributions to your HSA up to the IRS annual contribution maximum up until (1) you file your income taxes for 2021, or (2) April 18, 2022, whichever is earliest. To do this simply log in to Nyhart’s website and select Your Balances, then the blue Make an HSA Transaction button.

If you make additional contributions to your account for 2021, a new 5498-SA form will be generated and available online within a few days.

Helpful Tips

Recordkeeping

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

  • These receipts and records do not need to be submitted to Nyhart or to the IRS with your tax return.
  • You can attach and store digital images of your receipts by utilizing the online Expense Tracker feature on Nyhart’s website.

Learn more about HSA recordkeeping.

Eligible Expenses

A searchable table of eligible health expenses is available through Nyhart:

For additional information on qualified health expenses, review the following IRS publications:

Account Access

To access your Nyhart account, follow the IU Participant Login Instructions. Be sure to have your 10-digit university ID on hand.

If you’ve forgotten your username or password, go to iu.nyhart.com and select the Forgot username or Forgot password link. From there enter the email address associated with your Nyhart account, then select Continue. Nyhart will email you a link to create a new password.

For 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 2021 you’ll need to determine if you made any “excess contributions” to your HSA. This refers to contributions that exceed the annual prorated IRS contribution maximum. To calculate any excess contributions, you can follow the Instructions for IRS Form 8889 or speak to a tax advisor.

Once you’ve calculated the excess contribution amount, you can request a distribution from your account by submitting an HSA 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 also have the option to request direct deposit of the funds as long as your bank account information is on file. You must have enough funds in your account for them 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 tax return, you will report the withdrawal of these excess contributions on Form 8889 and pay income taxes on those funds.

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

Learn more about excess contributions.

Customer Service Contacts

The Nyhart Company
800-284-8412

iu.nyhart.com

IU Human Resources
812-856-1234

Internal Revenue Service (IRS)
1-800-TAX-1040
www.irs.gov

NOTE:
For advice about tax matters please consult a personal tax advisor. 

The IRS help line is 800-Tax-1040 (1-800-829-1040).