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Get your taxes done using TurboTax
All may be fine since the excess was taken out by 4/15 even though the code was wrong. Removing the excess by the due date of the return eliminates the penalty on the excess. The only issue remaining is if there were earnings. attributable to the excess. they needed to be removed as well.
I could find nothing definitive about not removing the earnings. My thought would be that they would be treated as an excess contribution not removed. Form 5329 for 2023 would need to be completed. This could affect 2024 as to the maximum HSA contribution that could be made.
March 10, 2025
12:02 PM