Looking for a Form 8853 Templates? Download it for free!

•

includes sales commissions,

You do not claim an exclusion from

1-year period. See Pub. 590, Individual

commissions on insurance premiums, pay

income for the amount of the withdrawn

Retirement Arrangements (IRAs), for

based on a percentage of profits, tips,

contributions, and

more details and additional requirements

•

and bonuses. Generally, these amounts

You also withdraw any income earned

regarding rollovers.

are included on the Form(s) W-2 you

on the withdrawn contributions and

Note. If you instruct the trustee of your

include the earnings in “Other income” on

receive from your employer(s).

Archer MSA to transfer funds directly to

your tax return for the year you withdraw

Compensation also includes net earnings

the trustee of another Archer MSA, the

the contributions and earnings.

from self-employment, but only for a trade

transfer is not considered a rollover.

or business in which your personal

Note. If you timely filed your return

There is no limit on the number of these

services are a material income-producing

without withdrawing the excess

transfers. Do not include the amount

factor. This is your income from

contributions, you can still make the

transferred in income, deduct it as a

self-employment minus expenses

withdrawal no later than 6 months after

contribution, or include it as a distribution

(including the one-half of self-employment

the due date of your tax return, excluding

on line 8a.

tax deduction). Generally, net earnings

extensions. If you do, file an amended

and self-employment tax deduction are

return with “Filed pursuant to section

Line 9

shown on the Schedule SE (Form 1040)

301.9100-2” written at the top. Include an

In general, include on line 9 distributions

you complete for your business or farm.

explanation of the withdrawal. Make all

from all Archer MSAs in 2008 that were

Compensation does not include any

necessary changes on the amended

used for the qualified medical expenses

amounts received as a pension or annuity

return (for example, if you reported the

(see page 1) of:

and does not include any amount

contributions as excess contributions on

1. Yourself and your spouse.

received as deferred compensation.

your original return, include an amended

2. All dependents you claim on your

Form 5329 reflecting that the withdrawn

tax return.

Line 7

contributions are no longer treated as

3. Any person you could have claimed

having been contributed).

If you (or your employer) contributed

as a dependent on your return except

more to your Archer MSA than is

Deducting an Excess Contribution

that:

allowable, you may have to pay an

in a Later Year

a. The person filed a joint return,

additional tax on the excess contributions,

You may be able to deduct excess

b. The person had gross income of

including any economic stimulus payment

contributions for previous years that are

$3,500 or more, or

that was directly deposited to your MSA.

still in your Archer MSA. The excess

c. You, or your spouse if filing jointly,

Figure the excess contributions using the

contribution you can deduct in the current

could be claimed as a dependent on

instructions below. See Form 5329,

year is the lesser of the following two

someone else’s return.

Additional Taxes on Qualified Plans

amounts.

(Including IRAs) and Other Tax-Favored

•

Your maximum Archer MSA

Accounts, to figure the additional tax.

For this purpose, a child of

contribution limit for the year minus any

TIP

parents that are divorced,

amounts contributed to your Archer MSA

separated, or living apart for the

Excess Contributions You Make

for the year.

last 6 months of the calendar year is

•

To figure your excess contributions,

The total excess contributions in your

treated as the dependent of both parents

subtract your deductible contributions

Archer MSA at the beginning of the year.

whether or not the custodial parent

(line 7) from your actual contributions (line

Any excess contribution remaining at

releases the claim to the child’s

4). However, you can withdraw some or

the end of a tax year is subject to the

exemption.

all of your excess contributions for 2008

additional tax. See Form 5329.

and they will be treated as if they had not

However, if a contribution was made to

been contributed if:

an Archer MSA in 2008 (by you or your

Part III—Archer MSA

•

You make the withdrawal by the due

employer), do not include on line 9

Distributions

date, including extensions, of your 2008

withdrawals from an Archer MSA if the

tax return (but see the Note under Excess

individual for whom the expenses were

Line 8a

Employer Contributions below),

incurred was not covered by an HDHP or

•

was covered by a plan that was not an

You do not claim a deduction for the

Enter the total distributions you and your

HDHP (other than the exceptions listed

amount of the withdrawn contributions,

spouse received in 2008 from all Archer

on page 1) at the time the expenses were

and

MSAs. These amounts should be shown

•

incurred.

in box 1 of Form 1099-SA.

You also withdraw any income earned

on the withdrawn contributions and

Line 8b

Example. In 2008, you were covered

include the earnings in “Other income” on

by an HDHP with self-only coverage and

Include on line 8b any distributions you

your tax return for the year you withdraw

your spouse was covered by a health

received in 2008 that were rolled over.

the contributions and earnings.

plan that was not an HDHP. You made

See Rollovers below. Also include any

contributions to an Archer MSA for 2008.

excess contributions, including any

Excess Employer Contributions

You cannot include on line 9 withdrawals

portion of a direct deposit of an economic

Excess employer contributions are the

made from the Archer MSA to pay your

stimulus payment, (and the earnings on

excess, if any, of your employer’s

spouse’s medical expenses incurred in

those excess contributions) included on

contributions over the smaller of (a) your

2008 because your spouse was covered

line 8a that were withdrawn by the due

limitation on line 5, or (b) your

by a plan that was not an HDHP.

date, including extensions, of your return.

compensation from the employer(s) who

See the instructions for line 7 on this

You cannot take a deduction on

maintained your HDHP (line 6). If the

page.

Schedule A (Form 1040) for any

excess was not included in income on

Rollovers

amount you include on line 9.

Form W-2, you must report it as “Other

CAUTION

income” on your tax return. However, you

A rollover is a tax-free distribution

Lines 11a and 11b

can withdraw some or all of the excess

(withdrawal) of assets from one Archer

employer contributions for 2008 and they

MSA that is reinvested in another Archer

Additional 15% Tax

will be treated as if they had not been

MSA or a health savings account.

contributed if:

Generally, you must complete the rollover

Archer MSA distributions included in

•

You make the withdrawal by the due

within 60 days following the distribution.

income (line 10) are subject to an

date, including extensions, of your 2008

You can make only one rollover

additional 15% tax unless one of the

tax return (but see the Note below),

contribution to an Archer MSA during a

following exceptions apply.

-4-

Instructions For Form 8853 - Archer Msas And Long-Term Care Insurance Contracts - 2008 Page 4

Related Articles

Related forms

Related Categories