I over contributed to my HSA in 2023. I did not realize the excess contributions until turbo tax prompted me about coverage per month of 2023 this past week. I called HSA provider and have started the process to get the excess contributions withdrawn prior to tax deadline and they stated that this withdrawal of excess contributions will show up on a 2024 1099-SA. I did not receive a 1099-SA in 2023 because I had no distributions during the year.
To my understanding I have to claim the withdrawal of excess contributions and the investment gain on the excess contributions (the # is being calculated for my by HSA company). But if this withdrawal is not being reflected until the 2024 1099-SA do i have to report it in 2024 as well?
Also am i missing anything in the process above to report the excess contributions? and I saw somewhere that there is a 20% penalty on top of income tax on the excessive contributions, is this true?
