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Level 1
Jan 24, 2026 7:45 PM UTC
Question

HSA Distributions

In January 2025, I withdrew one cent from my HSA account to avoid over contributing on the 2024 limit. But for the 2025 year, the HSA tax form now states that this is a $0.01 distribution (even though I removed the cent to avoid over contributing). Do I still have to report that this was used to "pay for medical expenses" even if it was just to avoid over contributions? What do I do to fix this distribution issue? 

    1 reply

    Level 15
    Jan 24, 2026 8:21 PM UTC

    The amount is trivial in terms tax liability. I would ignore it.