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Limitation calculation for HSA and Archer MSA contributions with multiple accounts

UltraTax CS can calculate the limitation for HSA and Archer MSA deductible contributions on Forms 8889 and 8853, even when there is more than 1 account.
The instructions for Form 8889 and 8853 state that for married taxpayers, if 1 taxpayer has a high deductible health plan with family coverage, this disregards all other plans. If both taxpayer and spouse have high deductible health plans with family coverage, the plan with the higher deductible is disregarded.
In the case of an Archer MSA, the deductible is multiplied by 65 percent for a plan with self-only coverage, or 75 percent for a plan with family coverage, to determine the yearly limit. Further limitations apply if the coverage was for less than a full year.
The family coverage limit is then divided between the taxpayer and spouse. If a taxpayer has more than 1 HSA or Archer MSA account, the contribution limit is divided between accounts. The tax application assumes an even division between taxpayer and spouse, or between a taxpayer's accounts. If there are multiple HSA or Archer MSA accounts to which contributions are made, review the limitation on Form 8889, line 6 or Form 8853, line 3 to ensure the application of the correct limitations.
There is a field for
HSA/MSA limitation (Force)
 on the
5498SA
 screen and also one for
Form 8889, line 6 (Force)
 to let different allocations of deductible contributions. See IRS Notice 2008-59 for examples of HSA contribution limitations and IRS Pub. 969 for examples of MSA contribution limitations.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
  • Subject: Health care

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