| Purpose | The purpose of this announcement is to advise employers about an additional code for use on the 2004 Form W-2. This code will be used to identify the amount of an employer’s contribution to an employee’s Health Savings Account (HSA). |
| Health SavingsAccounts(HSA) | A new code (Code W—Employer’s contribution to an employee’s Health Savings Account (HSA)) for use in box 12 on the 2004 Form W-2 has been added to the 2004 Instructions for Forms W-2 and W-3. |
| The Medicare Prescription Drug Improvement and Modernization Act of 2003 requires reporting of an employer’s contributions to an employee’s HSA on Form W-2. The amount that an employer contributes to an employee’s HSA will be shown in box 12 of Form W-2, using Code W. | |
| Generally, employer contributions to an employee’s MSA are not subject to income, social security/Medicare, or Railroad Retirement taxes and will not affect amounts otherwise reported in boxes 1, 3, and 5 of Form W-2. |
The Internal Revenue Bulletin is produced and published by the Internal Revenue Service and contains IRS pronouncements affecting tax analysis under the Code and the Regulations, including but not limited to Revenue Procedures, Revenue Rulings, Notices and Announcements. Access the IRS site at https://www.irs.gov/help/irsgov-accessibility for information concerning accessibility of IRS materials. While every effort has been made to ensure that the IRB database files available through the TouchTax application are accurate, those using TouchTax for legal research should verify their results against the printed versions of the IRBs available from the IRS.