Can I file an extension on already submitted taxes to allow for HSA excess contribution withdrawal to process?

[anluan]

I e-filed my taxes with Turbo Tax and paid what I owed. I have excess HSA contributions so I put in the option that I would withdraw them before the deadline.

However, my HSA provider now says they might not be able to process the request by the tax deadline on April 15th. Can I file for an extension to give my HSA provider more time to process my excess contribution withdrawal? Or do I just need to hope that they can get it done by the 15th? Do I have any options for how to proceed?

[DavidD66]

No, once you transmit your return via efile you can't file an extension.  You can try, but it should be rejected by the IRS.  You could print an extension an mail it in, although more than likely they will reject it and mail it back to you.  Trying either one of those things won't cause any problems.  Best bet is to cross your fingers and hope the withdrawal is done before the deadline.  If it's not, the fact that your tax return indicated that it would be and the funds are withdrawn you will probably be OK.  

[anluan]

I appreciate your response. If the withdrawal is not done in time but is done after April 15th, do I need to do anything for next year to correct things to ensure that I do not keep getting penalized in 2025? 

Also:

https://www.irs.gov/instructions/i8889#en_US_2024_publink37971yd0e1392

Per the IRS website, I did see this under Employer Excess Contribution. Would this only apply to Employer Excess Contributions? 

"Note: If you timely filed your return without withdrawing the excess contributions, you can still make the withdrawal no later than 6 months after the due date of your tax return, excluding extensions. If you do, file an amended return with “Filed pursuant to section 301.9100-2” written at the top. Include an explanation of the withdrawal. Make all necessary changes on the amended return (for example, if you reported the contributions as excess contributions on your original return, include an amended Form 5329 reflecting that the withdrawn contributions are no longer treated as having been contributed)."

[BillM223]

That last quote "Filed pursuant to section 301.9100-2" is normally for amended returns, which you don't seem to need, because you did indicate that you would withdraw the excess on your filed return, and you initiated the request to do the withdrawal before April 15th. 

Do you have any record that you initiated the request with the HSA custodian prior to April 15th? To my mind, that it all you need. You should not be held up because the HSA custodian is slow. A screen shot of the log on the HSA website or even an email from the HSA custodian would serve you well.

Whatever you have, put it in your tax files with your returns, just in case anyone ever asks.