Question

How do I handle excess contributions to an HSA? I took out money for the last several months because of the SS look back provision.

Forum|Forum|3 years ago
January 31, 2023
1 reply
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I began Medicare in January, but I was eligible for an HSA all during 2022. I applied for Medicare in October '22, so I removed the money I contributed since March of '22. I was contributing the maximum through work deductions - I did not personally contribute.

TurboTax Online

B

BillM223

Before April 15, 2023, you need to withdraw all the excess contributions. To do this, please do the following:

1. In TurboTax in the HSA interview, answer the question about the months you were on Medicare (it sound like you have this part covered).

2. In the following screens, TurboTax will tell you that you have excess contributions.

3. When it asks if you want to withdraw them before April 15th, (well, this year, April 18th), answer YES.

4. Then before April 18th, contact your HSA custodian and ask for the withdrawal of excess contributions. Did you already do that? Did you tell the custodian that this was for "excess contributions"? If not, they may have their paperwork wrong, so call them back.

5. They will send you a check for the excess, and will send you a 1099-SA to report the earnings on the excess as income on next year's return.

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