BillM223
Expert Alumni

Get your taxes done using TurboTax

Excess contributions have only to do with what was contributed to your HSA during the year, and nothing to do with distributions from your HSA for medical expenses, so that's not the reason for the 703 excess.

 

"I think the only thing that would happen is that since i took out 2153 i will pay extra income tax since I'm over 65." Yes, if your return is audited, I think this is true except that there may be penalties and interest. However, if you adjust your return to agree with the 703 excess, then if you report 703 as the withdrawal of excess and the difference of $1,450 as a withdrawal not for medical expenses, then extra income tax is all that you will pay, and penalties and interest will not be a problem.

 

Have a safe trip.

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