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April 15, 2023
Question

Excess on HSA contribution

  • April 15, 2023
  • 1 reply
  • 0 views

HSA total contribution for tax return 2022 was $3812. During turbotax desktop process, the software explicitly gave me an option to check "withdraw the excess amount before tax return deadline" ($162), so I checked it. I'm planning to contact my HSA and withdraw that amount.

My question is, where in the tax return forms is this accounted for? In form 8889 (part I), I only see boxes filled with either the limit ($3650) or my total contribution ($3812). How's IRS going to know that I withdrew the excess amount?

 

Part II includes a total of $1442 distributions, but that was because of medical expenses.

 

Help please!

    1 reply

    April 17, 2023

    The IRS will not be notified that you withdrew the amount unless they audit your tax account or the tax account of the HSA custodian.

     

    So don't worry about how the IRS will find out about the withdrawal, just make sure that everything on your side is in order.

     

    Also, be sure to initiate the withdrawal of the excess contribution by end of day tomorrow (April 18, 2023).

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