HSA Contribution DeadlineQ: How do I make sure that my HSA deposit is recorded for the correct tax year (2007) and what is the deadline?
A: HSA Bank offers these suggestions for accurate tax reporting and expedited processing:
In order to ensure contributions are correctly reported on employee tax forms, the contribution year must be included and the category for the contribution must be correctly designated. Designations include EE (employee), ER (employer), or EX (employee pre-tax) for all methods.
- For Electronic wire or ACH method--include the proper coding in the file that they submit to HSA Bank.
- For Checks and Paper Contribution Forms-- use the updated Employer Contribution Form, available here: http://www.hsabank.com/WorkArea/showcontent.aspx?contentID=456. If the contribution year is not included on paper forms, contributions will default to the current year. Incomplete checks cannot be processed. To avoid delays, checks must be signed and include the date and the amount of the check both in the box and on the amount line.
- Fees--If a contribution is counted toward the incorrect year and it is not due to a bank error, the employer will be invoiced a $10 fee for each tax form that needs to be corrected. Tax year errors affect IRS reporting. If the contribution designation, ER/employer, EE/employee and EX/employee pre-tax, is incorrect, and tax form corrections are requested, employers will be invoiced $5 per form. (Contribution designations are a service provided for the convenience of our customers but do not affect tax reporting.) HSA Bank will correct the contribution and send a corrected tax form to the employee once the invoice is paid.
Contribution Deadline - Contributions for 2007 can be made until the tax-filing deadline, not including extensions when the contribution year is properly identified.
Online contributions: April 14, 2008 (Must be submitted by 2:00 p.m., CT)
Wire contributions: April 15, 2008 (Must be received by 12:00 p.m., CT)
Mailed contributions: Received by April 15, 2008
Limits for 2007 are $2,850 for individual and $5,650 for family coverage and for 2008, they are $2,900 for single and $5,800 for family coverage from all sources. Employees can track contributions through Internet Banking. Excess contributions can be counted for 2008.