Hi Dmertz, thanks for the reply. I understand what you are saying that by withdrawing the excess prior to the tax deadline that effectively the excess contribution did not happen. I have heard that from a number of others. However, how do I let the IRS know I have returned the excess HSA contribution before the tax deadline given that my W2's include the excess contributions? I assume there has to be some way to document for the IRS that the excess was returned within the tax return for that same tax year. I thought that the 5329 was there for that purpose. Also, how and in what tax year do I report the added income that came from the return of excess contributions?
