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March 12, 2024
Question

It says I have $2,000 excess contributions for HSA. I have no funds in my HSA. How do I make that correction?

  • March 12, 2024
  • 1 reply
  • 0 views
My employer contributes $1,000 each year. I have medical insurance with my employer and Medicaid.

1 reply

March 12, 2024

If you have no funds, then you cannot withdraw the excess. The excess will be carried over to next year with "6%" penalty. However, the penalty is 6% of the smaller of the amount of the excess carried over or the value of your HSA on 12/31/2023...so in your case, the penalty might be zero.

 

However, the excess will continue to carry over until you can get rid of it.

 

Note, that if you are on Medicaid, you are not allowed to contribute to your HSA. So you will not be able to fix this until you are out from underneath Medicaid.

 

In the meantime, be happy that your penalty is zero because you have no money in the HSA.

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