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HSA Excess Contribution amount that I no longer have

Forum|Forum|5 years ago
March 20, 2021
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It looks like I had an excess contribution towards my HSA of $625 that will be taxed 6% unless I withdraw the money out of the account. Because I used my HSA for multiple medical bills last year, I do not have $625 in the account. So my question is, how can I be taxed on money I no longer have and can not take out of my account? What should I do in this case? What are my options?

Also, what are the contribution limits for a single person to have in an HSA Account? With my total contributions, I believed I only had roughly $2000 in 2020.

Thank you for your advice and answers.

BRI

Not A Product Question

Best answer by MAK70

If you contributed to an HSA and did not qualify, you must pay the excess contribution penalty if you do not remove it from the account. This most often happens if you did not have an HDHP or entered it incorrectly in TurboTax. Go back to the HSA section, and go through the entries again and check your answers.

The self-only 2020 Contribution limit is $3,550.

M

MAK70Answer

If you contributed to an HSA and did not qualify, you must pay the excess contribution penalty if you do not remove it from the account. This most often happens if you did not have an HDHP or entered it incorrectly in TurboTax. Go back to the HSA section, and go through the entries again and check your answers.

The self-only 2020 Contribution limit is $3,550.

B

Briz2800Author

Thank you for your answer. I am assuming I did qualify to contribute to my HSA in 2020 because this is the second or third year I have had HSA and I've always contributed more out of my paycheck towards it. I used up all of the money in 2020 so I could not withdraw the overage that would have been taxed the 6%.

I realized that by answering if I had an HDHP (I'm assuming I do/did) that it skipped over the option to withdraw my excess contribution in order for it not to be taxed on.

Because my total contributions totaled under $2000 last year, I fell below the limit you mentioned.

Thanks again for your help.