@ramNAM wrote:
@Opus 17 I asked HSA custodian to have the excess removed and in my account activities transaction is marked as an excess removal with Earnings on Excess Contributions as $0.0
For 2024
How is the excess reconciled on form 5329.
On Line 42 I will have $1035
On Line 43 is 0 as i maxed HSA
On Line 44 is 0 as (In 8889 14a 1350 and 14b 1350 result in 0 for line 16)
No.
Line 42 is $1035.
If you remove $1035 as an excess contribution for 2024 before the deadline of April 15, 2025, then per the instructions, you will enter $1035 on line 43. (Your max $4150 minus your net contributions of $3115. Excess contributions removed before the deadline are considered never to have been made.)
Line 44 is taxable distributions, that's distributions not used for medical care, that should be zero, because you don't want to be paying tax and a 20% penalty.
Line 45 is $1035, line 46 is zero. Line 47 and 48 are zero. That's how the 2023 excess gets removed by applying it toward the 2024 limit, as long as you remove some 2024 contributions to "make room" under the limit.
