When should I expect a revised 1099-SA (Code 2) after withdrawing excess HSA contributions?

Forum|Forum|3 years ago
June 2, 2023
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My wife had an FSA in 2022, while I had an HSA (under separate providers). We learned that this isn't allowed according to IRS rules. Due to this discovery, I've had to go through the excess withdrawal process and remove all my contributions to my HSA in 2022. We've also filed for an extension to deal with this mess. I've received the funds from my HSA custodian, but I was under the assumption that we'd receive a revised 1099-SA (with distribution code 2) immediately after the excess removal process was completed. I just found out that my HSA custodian won't generate a revised 1099-SA until January 2024. What options do I have for finishing my 2022 taxes, specifically showing that I've withdrawn the funds that were contributed in error?

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Best answer by Critter-3

You don't need the updated form to complete the 2022 return ... in the program you will simply indicate that you DID withdraw the excess contribution and file the 2022 return. Since you made the distribution in 2023 then the HSA is correct ... it will show up on the 2023 1099-SA that you put on the 2023 return.