I see the changes on the form you are referring to BillM223. However, now I think form 5329 is being calculated incorrectly. Not sure if its related to the change.
I have a large HSA carryover that I have been depleting for multiple years. My employer contributes the maximum for a family. I have been using the remainder towards the carryover. In 2022, line 42 was 20,400, line 43 was 4,500 (the allowed carry over), line 44 was blank, line 45 was 4,500, line 46 was 15,900, and line 47 was blank. The 6% excise tax was issued on the 15,900 (line 46) for a total of $954.
However in 2023, TurboTax is currently filling the form out as follows. Line 42 15,900, line 43 0, line 44 blank, line 45 0, line 46 (now titled prior year excess) 15,900, line 47 (now titled 2023 excess) 11,150, line 48 (total excess) 27,050. The 6% excise tax was issued on 27,050 (line 48) for $1,623.
The only amount that went into my HSA for 2023 was the employer family contribution of $3000. So I should have $4750 of carryover to reduce the 15,900 to 11,150. The excise tax should be issued off the 11,150 at $669. Instead the software seems to be adding my 2022 carryover to my 2023 carryover for a total of 27,050.
Thank you for any help and insight into this.
