Someone outside of my organization presented this question and am trying to help.
The company contributes to an Health Savings Account (HSA) for its retirees.
The retirees are not paid on their payroll system and do not receive a W2. A 3rd party processes the payments and produces a 1099 for the retiree payments.
The questions are:
1. How will this contribution reported to the retirees? The information should be included on the HSA administrators statement to employees.
2. Do they need to create a W2 which reports only the Employer contribution to the HSA in Box 12W?
The employer contribution is not taxable to these employees, as they are not located in any state which taxes employer HSA contributions.
Your guidance and assistance is appreciated.
