HSA church deposits taxable?

by Steve

If a church deposits directly into a HSA to assist the pastor with the high deductible, are those monies reported and taxable (we're W-2 reporting)?

vickey's reply

HSA (Health Savings Account) is usually tax-free accounts. If you are unsure if it is set up correctly to be a tax free account, check with a CPA.

Many times a CPA will give churches free advice, but even if they charge a fee...it might be worth it to make sure it is set up properly.

If it is being paid through an insurance company, you should be able to check with your insurance representative if it is a tax free account or not.

Hope this helps,

Church Accounting Package


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