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New Member
posted Feb 17, 2025 12:48:49 PM

Why are we being told our HSA is over funded when we have not hit the IRS contribution limit?

My spouse and I have a family HSA, where the contribution limit for 2024 was $8300. We were nowhere near the limit in 2024 and yet we are being told it's being taxed an extra 6% for over funding. It does not make any sense and feels backwards.

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1 Replies
Expert Alumni
Feb 17, 2025 12:56:14 PM

Did you do the HSA interview (Deductions & Credits->Medical->1099-SA, HSA, MSA)? Did you go all the way through it, until you see HSA Summary?

 

It sounds like you enter your W-2 with a code W amount in box 12, but never did the HSA interview, so TurboTax assumes that you didn't have any of the required HDHP coverage. Hence all contributions are in excess.

 

Please follow the navigation above (in bold) and do the HSA interview.