Excess contribution to HSA

Forum|Forum|1 year ago
March 26, 2025
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My wife went on Medicare in Fe 2024. She she had an employer health insurance plan and HSA prior to Medicare. She stopped her HSA contributions in early January, but her employer didn't stop contributions until the first of March. She over-contributed by about $600.

I thought she has until April 15, 2025 to correct the issue. We called the HSA holder, they said to contact the employer. We contacted the employer, they are telling us it is too late to reverse the transaction. I thought all the employer had to do was withdraw the money, issue her a check, and update her W2.

How do I handle this when the employer is not willing to help us?

Ask the Experts - Education - Mar 2025

DianeW777

The excess can be withdrawn as long as it is before April 15th. Contact the plan administrator and remove the excess.

If you contributed too much or weren't eligible to contribute to your HSA in 2024, you'll need to withdraw the excess amount by April 15, 2025 to avoid a penalty (October 15 if you filed an extension).
Review the information in the article below and enter information in your tax return to be sure of the excess amount before you withdraw. You have time to do it before the filing deadline.
- Why am I showing an excess HSA contribution? - You already know why, the article will provide more answers.

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