Question

TurboTax excess HSA contribution, even though there was not. The guide article was not helpful, as everything it suggests was already checked. Any help?

Forum|Forum|6 years ago
March 12, 2020
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TurboTax Premier Online

The main reason you might get an 'over contributed' error for your HSA is that TurboTax picked up your HSA contributions from your W-2, and you also entered them again in the HSA section. If they are included on your W-2, do not enter them again.

If this is not the case, make sure you indicated 'Family Plan' for your HDHP coverage.

From Opus 17

First, if you and your spouse were enrolled in HSA-eligible insurance for the entire year, your limit would be $7000 (unless over age 55 which would raise your limit.)

If you are being told you have excess, the most likely reason is you did not finish the interview and are jumping around from piece to piece. Turbotax assumes your contributions are non-allowed until you finish the health insurance interview and tell the program that you had qualifying HDHP insurance and were not covered by any other insurance for the whole year. I believe this can be accessed both from the 1099-SA interview and from the HSA interview on the deductions and credits page. Make sure you complete these sections.

Why am I showing an excess HSA contribution in 2019?

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F

fredandsonja

I am seeing this too - I have answered all of the HSA questions correctly (full year HDHP family plan, no medicare, amount is less than 7000, and I only used the W2 amounts - I didn't enter any personal contributions). It is still saying that my full amount (5800) is excess - but it is clearly below 7000. Is there a bug in the software?

Fred

B

BillM223

Did you have an excess contribution in 2018 that you carried over to 2019? That is, did you have an excess contribution 2018 that you did not withdraw last year before April 15th, 2019?

This carries over to 2019 and reduces your HSA contribution limit for 2019.

Since this is a carryover, it's not visible to you in the HSA interview, and you don;t realize it is happening.

Note that in the HSA interview, you are asked if you "overfunded" your HSA in 2018, but what it really means is "Did you carryover excess contributions to 2019?" This is not referring to the situation where you have an excess in the previous year but withdrew it in a timely manner.

So did you have form 5329 in your 2018 return, and were there any entries in Part VII of that form?

Another thought: did you spouse have an HSA and a separate HDHP policy? did you spouse contribute to his/her HSA under the Self-only limit? That's an easy way to have an excess contribution, because if one spouse has Family HDHP coverage, then both spouses do, and they have to share the Family limit in the aggregate for both HSAs.

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