When I filed our 2023 taxes, we discovered our employer contributed $19 too much to our HSA (combination of employer contribution and withholding). I wasn't able to get the excess removed before the filing deadline but did manage to get it removed in June 2024.
In 2023, we filed a Form 5329 and paid additional tax of $1 on the $19 excess contribution.
For 2024, I received a 1099-SA which shows Distribution Code 2 (excess contribution removed). TurboTax has filled out another form 5329 for 2024 showing the excess contribution and another $1 tax.
I hoped that everything would sort itself out on our 2024 taxes (working on those now). In double checking things, I'm wondering if I actually have to file an amended 2023 return to show I did remove the excess contribution within the 6 months of filing? Or am I screwed and just have to pay this $1 every year?
