Source: http://www.taxalmanac.org/index.php/Notice_2008-51.html
Timestamp: 2020-05-29 03:26:42
Document Index: 112054882

Matched Legal Cases: ['§ 223', '§ 408', '§ 408', '§ 408', '§ 408', '§ 223', '§ 408', '§ 223', '§ 223', '§ 408', '§ 223', '§ 223', '§ 408', '§ 223', '§ 223', '§ 223', '§ 408']

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1.1 Eligible individuals
1.2 General rules on taxation of distributions from IRAs
2 HEALTH OPPORTUNITY PATIENT EMPOWERMENT ACT OF 2006
2.1 Tax treatment of qualified HSA funding distributions
2.2 Qualified HSA funding distribution only from certain
2.3 Maximum amount of qualified HSA funding distribution
2.4 One-time qualified HSA funding distribution
2.5 No deemed distribution date
2.6 Procedures for making the transfer from an IRA to
2.7 Testing period rules
2.8 No interaction between testing periods
2.9 Application of § 223(b)(8)(B) testing period
2.10 HSA distributions not used for qualified medical
4 REPORTING AND WITHHOLDING
Qualified HSA funding distribution only from certain
types of IRAs A qualified HSA funding distribution may be made from a traditional IRA under § 408 or a Roth IRA under § 408A, but not from an ongoing SIMPLE IRA under § 408(p) or an ongoing SEP IRA under § 408(k). For this purpose, a SIMPLE IRA or SEP IRA is treated as ongoing if an employer contribution is made for the plan year ending with or within the IRA owner’s taxable year in which the qualified HSA funding distribution would be made.
Procedures for making the transfer from an IRA to
an HSA An individual must be an eligible individual (as defined in § 223(c)(1)) at the time of the qualified HSA funding distribution. The distribution must be a direct transfer from an IRA or Roth IRA to an HSA. For example, if a check from an IRA or Roth IRA is made payable to an HSA trustee or custodian and delivered by the IRA or Roth IRA account owner to the HSA trustee or custodian, the payment to the HSA will be considered a direct payment by the IRA or Roth IRA trustee, custodian or issuer to the HSA for purposes of § 408(d)(9).
Application of § 223(b)(8)(B) testing period
to contributions which are not qualified HSA funding distributions If an HSA account beneficiary’s contributions to his or her HSA in a taxable year include both a qualified HSA funding distribution (or distributions) and other contributions subject to § 223(b)(8), the § 408(d)(9)(D) testing period rules apply to the qualified HSA funding distribution (or distributions) and the § 223(b)(8)(B) testing period rules apply to the other contributions. If the individual fails to remain an eligible individual during the § 223(b)(8)(B) testing period, but does remain a qualified individual during the § 408(d)(9)(D) testing period, the amount included in the individual’s gross income is the lesser of:
expenses An HSA distribution not used for qualified medical expenses (as defined in § 223(d)(2)) is included in gross income under § 223(f)(2) and subject to the 10 percent additional tax under § 223(f)(4) (with certain exceptions), regardless of whether the amount contributed to the HSA under the qualified HSA funding distribution is included in the account beneficiary’s income and subject to the additional tax under § 408(d)(9)(D). See Notice 2007-22, 2007-10 I.R.B. 670, regarding the consequences of distributions from HSAs.
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