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Solved

HSA over contribution 2024 for 2024 Tax Year

Forum|Forum|1 year ago
September 16, 2024
2 replies
0 views

Question -

I have two HSA's for two different companies. If I were to over contribute to both by 2k - but leverage the HSA to cover 5k in approved medical costs - reducing my tax liability - can i continue to contribute into the HSA's up to the max allowed or is the calendar year contribution a hard line once you hit it? In other words, if I flex up and down on the max family contribution limit - and i'm below the line - can i continue to contribute if I've already exceeded the line previously?

Not A Product Question

Best answer by dmertz

Distributions from the HSA have no bearing on the amount that you are eligible to contribute. The limit is on how much you put in for the year and is unaffected by any amount that you spend on medical expenses. If your combined contributions already exceed the annual limit by $2k, you already have a $2k excess contribution that is subject to penalty unless corrected by a return of excess contribution by the due date of the corresponding year's tax return, including extensions, and you are ineligible to contribute any more for that year, 2024 in this case.

Employee

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dmertzAnswer

Employee

Distributions from the HSA have no bearing on the amount that you are eligible to contribute. The limit is on how much you put in for the year and is unaffected by any amount that you spend on medical expenses. If your combined contributions already exceed the annual limit by $2k, you already have a $2k excess contribution that is subject to penalty unless corrected by a return of excess contribution by the due date of the corresponding year's tax return, including extensions, and you are ineligible to contribute any more for that year, 2024 in this case.