How to manage excess HSA contribution in 2024 that was rolled over into 2025 contributions

Forum|Forum|3 months ago
February 26, 2026
2 replies
7 views

Background: My wife and I individually contributed to our HSA's (self-only limit) for a few years until mid-2024. We had a child, I stopped contributing, and my wife increased her contributions, to an amount we believed to be the "family max" HSA contribution limit. We were notified of an excess HSA Contribution of approximately $328 when filing 2024 taxes. I remember calling my HSA to confirm this excess, and I believe I chose the option in TurboTax to rollover the excess into my 2025 HSA contributions. (I do not recall doing any paperwork nor was I made aware of any required paperwork with my HSA to confirm this decision). My wife (the sole HSA contributor) intentionally decreased her HSA contributions in 2025 so as not to once again exceed the family maximum.

On this year's HSA tax form 1099-SA, box1 "gross distributions" show $328. Box 3 shows code 2, telling me Box 1 is from an "excess contribution".

A large part of my confusion may be from misunderstanding the language of tax forms, and by what TT is asking me. But I'm wondering if this 1099-SA is indicating I didn't manage my excess contribution from 2024 in TT correctly, or I didn't manage it correctly with my HSA, or am I on the right track and if so, what would be the correct way to complete the TurboTax HSA questionnaire so I correctly settle this with the IRS and not see it again next year?

michaelbarry06Author

Level 2

More detail that may be helpful:

2024 total HSA contributions (self): $2,103.85

2024 total HSA contributions (spouse): $6,523.85

Total contributions 2024: $8,627.70 (exceeding $8,300 max by $328)

2025 total HSA contributions (family): $8,288.29 (from HSA form 5498-SA)

2025 W-2 Box 12, code W = $7,960.20

Difference between these two being $328

It appears that my employer contribution ($7,960) was deducted from my wages, box 1, in my W-2. Therefore, my total 2025 contributions of $8,288 accounts for that made during 2025 by me, my employer, and includes the carry over that was excess in 2024. This number is not exceeding the 2025 family max of $8,550.

So with this year's filing, when turbotax asks me "Did [spouse] have excess contributions deducted from their wages? (Tell us if your excess HSA contributions was made by your employer and decuted from the wages in box 1 of your W-2)"...my answer should be "no" since Box 12 code W was not $8,288.

Is this correct? If so, it makes the $328 show as wages in turbotax under HSA. Will this take care of this 2024 overcontribution once and for all or is there something else I should be doing?

BillM223

Level 15

"I remember calling my HSA to confirm this excess," - your HSA custodian actually has no way to know if you made excess contributions because they don't have all the information that TurboTax has. All they can tell you is the maximum for any given HDHP class.

"I do not recall doing any paperwork nor was I made aware of any required paperwork with my HSA to confirm this decision" - correct. Once the money is in your HSA, the handling of any excess is a paperwork issue that is on your tax return. You did not have to report this to the HSA custodian.

The 1099-SA for the amount of $328 was triggered by your request to withdraw the excess HSA contributions from 2024, which means that you did NOT "carry over" the excess to 2025, despite what you remember. If you requested this withdrawal prior to April 16, 2025, then you "cured" this excess, so there is no impact on your 2025 return. NOTE, if you requested this withdrawal after this date, then the excess carried over to 2025 anyway, and you need to contact the HSA custodian and report a "Mistaken Distribution", i.e., you should not have withdrawn it. However, the odds are good that the HSA custodian will decline to do it because this was "last year" (be nice when you ask, because they don't have to accept the request).

If there was an excess (yet to be determined) carried over from 2024 to 2025, you correctly reduced your HSA contributions for 2025.

"my answer should be "no" since Box 12 code W was not $8,288. " - No, you should answer "no" because (1) you don't even know if you had an excess in 2025 (TurboTax should not ask you this question until it tells you that you have an excess, which I assume it hasn't yet for 2025), and besides, if there really was a carryover of excess contributions (to be determined), it would have been applied as a "personal" contribution, not "employer" contributions. But please tell me what is reported word for word on the HSA Summary when you say, "makes the $328 show as wages in turbotax under HSA".

So, please come back and let me know when (the date) you requested this withdrawal of excess HSA contributions, and we will work from here.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

dmertz

Level 15

I responded to michaelbarry06's similar question with this:

"HSA says my total contributions for 2025 is $8,288."

What happened is that you received a distribution of $328 as a return of the excess contribution and you deposited that $328 back into the HSA as a personal (not through your employer) 2025 contribution. That combined with the $7,960 contributed via your employer in 2025 makes your total contributions for 2025 be $8,288.