BillM223
Expert Alumni

Get your taxes done using TurboTax

No, please do not hand-modify the 8889 - it voids the Accuracy Guarantee and may block you from e-filing.

 

I assume that you meant by "retired" that you are now on Medicare, so, as you know, you cannot contribute to the HSA any longer. 

 

There are two ways to end a carryover: (1) use the carryover up in the subsequent year, and (2) make a distribution not for medical expenses.

 

It seems that you recognize that you can't do #1 because you are no longer eligible to do so (no HDHP). 

 

So that leaves only #2: call the HSA custodian and ask for a distribution. When you get the money, go to a baseball game, pay your grocery bills, buy roses for your mother - just don't spend it on qualified medical expenses.

 

So please don't sneak around and try to fudge the 8889 - to make this carryover stop, you have to make that distribution and then pay income tax on it and a 20% penalty...but then you will be done with it.

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