Should I report the withdrawal of ineligible 2024 HSA contribution on my 2024 tax return, while the 1099-SA is unavailable until early 2026?

DavidQ322 · ‎March 22, 2025

In 2024, I made an HSA contribution but later discovered that I was ineligible to contribute further due to a conflict between my HDHP and my wife’s FSA account. After extensive online research, including utilizing ChatGPT and Perplexity AI, I withdrew both my HSA contribution and its earnings in early 2025. However, the HSA custodian has not yet issued a 1099-SA for this withdrawal, which is expected to be available in early 2026.

While this delay is acceptable, I intend to report the ineligible contribution on my 2024 tax return to indicate that I withdrew it before Tax Day (April 15, 2025) to avoid potential tax penalties. However, ChatGPT and Perplexity AI provide conflicting advice regarding whether I should report the withdrawal amount as income on this year’s return due to the absence of a 1099-SA.

I would appreciate guidance from an expert or knowledgeable individual on the appropriate course of action regarding the reporting of the ineligible contribution and earnings. Thank you for your assistance.