FROM THE OFFICE OF PUBLIC AFFAIRS
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January 11, 2005
JS-2197
Treasury and IRS Release Guidance Clarifying the Tax
Treatment of HSA Contributions by Partnerships and S corporations
WASHINGTON, DC -- The Treasury Department and the IRS today issued guidance clarifying the tax treatment of a partnership's contributions to a partner's Health Savings Account (HSA) and an S corporation's contributions to a 2-percent (or greater) shareholder-employee's HSA. Generally, in such cases, the HSA contributions are treated as payments to the partner or shareholder and are not treated as excludable employer contributions. The contributions will be treated as the individual partner's or shareholder's contribution and allowed as above-the-line deductions on their individual income tax returns, similar to the treatment for any eligible individual who makes a contribution to an HSA directly with after-tax funds. The guidance also addresses the employment tax treatment of the contributions.
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