Topic Thread

2% shareholders and HSA contributions

  • 1.  2% shareholders and HSA contributions

    Posted 5 days ago
    We are a sub S corp and I'm wondering if I'm reading this right.  Contributions by the company to a 2% shareholder/employee's HSA are taxable, correct?  Are a 2% shareholder/employee's contributions deducted pre-tax or post tax?

    Thanks for your help,
    Scott

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    Scott Wallace
    Otto Baum Company, Inc.
    Morton IL
    (309) 266-7114
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  • 2.  RE: 2% shareholders and HSA contributions

    Posted 5 days ago
    We're an S-corp as well. A 2% shareholder's contributions to an HSA must be post tax. However, you can deduct the contributions on your tax return, so it ends up being almost as good as a regular employee's pretax contribution.

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    Marc Victor
    VP & CFO
    Rafn Company
    Bellevue WA
    (425) 702-6685
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  • 3.  RE: 2% shareholders and HSA contributions

    Posted 2 days ago
    Ok, I get that the companies contribution to a 2% employee/shareholder is taxable, but what about the employee's contribution from his paycheck?  Is that deduction taken pre or post tax?

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    Scott Wallace
    Otto Baum Company, Inc.
    Morton IL
    (309) 266-7114
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  • 4.  RE: 2% shareholders and HSA contributions

    Posted 2 days ago
    The employee HSA contribution deduction is pretax.  However, looks like I have to do an adjustment for 2% shareholders.​

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    Kenneth MacGregor CCIFP, CMA
    Chief Financial Officer
    Gilmore Construction Corporation
    Denver CO
    (720) 224-2500
    KennethKennethKennethKenneth
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  • 5.  RE: 2% shareholders and HSA contributions

    Posted 20 hours ago
    Straight from the IRS website:
    IRS
    2% Shareholders can contribute into their HSA but it's POST tax.  It all shakes out on their tax return.


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    Staci Hurst CCIFP
    Controller
    Ennis Electric Company, Inc.
    Manassas VA
    (703) 335-6700
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  • 6.  RE: 2% shareholders and HSA contributions

    Posted 17 hours ago
    The employee's contribution from his/her paycheck is pretax.


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    Zee Malik CCIFP, CPA
    Audit Director
    Katz, Sapper & Miller, LLP
    Indianapolis IN
    (317) 452-1040
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  • 7.  RE: 2% shareholders and HSA contributions

    Posted 4 days ago
    Scott,

    Yes, company contributions to a 2% or greater shareholder's HSA account is post-tax. They are also ineligible for an HRA account (if you have one of those).

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    Leila Bennett-Snow CPA
    Controller
    Strategic Mechanical Inc.
    Fresno CA
    (559) 291-1952
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  • 8.  RE: 2% shareholders and HSA contributions

    Posted 3 days ago
    With our HSA I add the company contribution portion to everyone's income.
    Then for the HSA deduction the company portion and or any additional amount are deducted pretax like 401K.
    So essentially it nets out to $0 if the employee only doing the company portion??  If the employee is depositing more they would get the immediate tax break.  Let me know if this works or am I missing something?
    Thank you,
    Ken

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    Kenneth MacGregor CCIFP, CMA
    Chief Financial Officer
    Gilmore Construction Corporation
    Denver CO
    303-371-5700
    Kenneth MacGregor
    ------------------------------