NY - Health Savings Account Conformity
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From TaxAlmanac
New York Health Savings Accounts
New York does conform to the portion of §223 of the IRC that permits eligible individuals to establish Health Savings Accounts (HSA’s) for taxable years beginning on or after January 1, 2004. This was added in the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. For federal purposes, HSA contributions are deductible from AGI, the contributions grow tax-free over the years, and amounts can be distributed tax-free to pay or reimburse qualified medical expenses.
New York includes the HSA deduction claimed on Form 1040, Line 28 on Form IT-201, Line 17 with other federal adjustments to income. The earnings from an HSA and the rollovers from an MSA to an HSA are nontaxable to New York.
