I have an HSA and I always max out my contributions every year. I meet the requirements of having an individual HDHP for the entire year. I also participate in a movement program offered by my health insurance provider and it contributes money towards my HSA every quarter.
In January of 2022, my HSA said that I had $336 left to contribute for 2021. I contacted my HSA bank as there was a deposit from my movement program in January that was not counted in the 2021 contribution totals (the January 2021 deposit applied to 2020). I was told that the money was going towards 2022 since that is when it was deposited, so I contributed the $336 that the bank said I had left to contribute for 2021. I filled out my taxes to show that I has maxed out the contribution for 2021 ($3600 total between what I had taken out of my paycheck, the movement program and the additional funds in 2022 to max it out) .
I checked in January of 2023 to see how much I would need to add to max out for 2022 and it was a much higher amount then I expected. I pulled my updated 5498 from the previous year (which included contributions made in 2022 for 2021) and it ends up that the money deposited by the movement program in January of 2022 went towards 2021 instead of the 2022 that they told me. According to this, I now have an over contribution to my HSA for 2021 since the $336 I deposited was calculated with the movement funds in 2022. I have not received any notification that I am over for 2021, but based on the 5498, I am over by the dollar amount contributed by the movement program. The TurboTax software asks me to enter the amount from line 48 on my 2021 Form 5329. I do not have a Form 5329 and I want to make sure that I take care of this issue correctly. Do I just put the amount that I have calculated that I am over? It then asks for the HSA balance as of 12/31/2022 that includes any contributions made in 2023 for 2022. Do I subtract the amount that I am pulling out to correct the issue? Also, I have a large chunk of my HSA invested, so do I need to include the invested amount in that total? Is that anything else that I need to keep track of or account for in order to get this fixed on my 2022 taxes? Thanks in advance for any assistance.
