In October 2024 before the tax extension deadline I requested my HSA broker Fidelity to withdraw excess HSA contribution that was made in 2023 calendar year.
In October 2024, on my 2023 tax return I promised that I had filed the request before the 2024 tax extension deadline.
After the deadline it turned out that Fidelity failed to process it. I spoke to multiple agents, escalated to several supervisors, they promised to fix it, but they failed. Fidelity HSA department have been astronomically incompetent and giving run-arounds this whole time.
Now, several months later, in 2025 at this point, they are saying that I need to make a regular withdrawal and talk to a tax professional.
If they processed the excess contribution before the deadline, than it would be as if I never made the contribution and my taxes would have been simple.
What do I do now? How do I correct the now invalid promise on my 2023 tax return of excess contribution having been withdrawn? Do I need to file the amendment to my 2023 tax return?
How do I word it, where do I amend it, how do I explain it? Any caveats?
What do I do on my 2024 return that is due soon this year?
I didn't own any stocks in my HSA, but it still earned a small interest on cash balance.
