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HSA Contributions from Sole Proprietor Business Checking Account

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  • HSA Contributions from Sole Proprietor Business Checking Account

    Are there any tax implications for making contributions to my HSA through my business account? I'm a sole proprietor. Not sure if it will be considered an "employer" contribution and will limit tax deductions.

    I tried changing it to my personal account on Fidelity's website, but I've been receiving an error message for the past 24 hours.

  • #2
    There is no federal tax distinction between a sole proprietorship and the owner as an individual. Your business accounts are your personal assets and vice versa. HSA contributions are only considered "employer" contributions if done by salary reduction through a Section 125 employer plan. Pass-thru businesses owners can not receive pre-tax health & welfare benefits. This is a personal HSA contribution reported on Form 8889 and deducted on Form 1040.

    While it is generally best practices to not commingle personal and business transactions. That is more for easier identification and defense of business expenses than anything else. Something this large and identifiable should not be a problem
    Last edited by spiritrider; 12-13-2019, 10:19 AM.


    • #3
      I usually don't comingle at all. Was trying to change it before first deduction on the 16th, but Fidelity's website is having problems.