Overfund HSA in 2023, withdrew in 2024 before tax filing. 2025 turbotax asks for line 48 of form 5329

[lasr]

I made excess contribution to 2023 HSA. The excess amount was withdrew before 2024 tax filing. I got a 1099-SA for 2024 because of that withdrawal, the only HSA distribution for 2024 .  I am doing 2024 tax and am asked for the line 48 of form 5329. I don't find 5329 in my 2023 tax. What should I do? I think I avoided penalty to that 2023 excess contribution. PS, I always used TurboTax for past years and this year.

[BillM223 · Accepted solution]

When you withdrew the entire excess before the due date of your 2023 return (on or about April 15, 2024), you "cured" the excess, so no 5329 was generated.

In your case. when you were asked in your 2024 interview if you overfunded your HSA in 2023, answer NO. The question really wants to know if you carried over an excess from 2023, which you did not.

If you were asked for line 48 on the 5329, start the HSA interview over again, and answer NO to the overfunding question.