Get your taxes done using TurboTax
You can provide an explanation for your HSA withdrawal not being made timely, such as "Excess not withdrawn due to failure of broker to follow timely request to remove excess before tax filing deadline".
You can amend your 2023 tax return to reflect the failure to withdraw the excess. You can do this using the TurboTax 2023 edition of TurboTax desktop or if you use TurboTax Online you can do it through the TurboTax account used to prepare your 2023 tax return. You will not be able to e-file the amendment you will have to mail it.
There are two main ways to correct HSA excess contributions:
1. You can withdraw the excess funds. To avoid a penalty, you can withdraw your excess HSA contributions from your HSA account before the deadline to file your taxes. This includes extensions, (which you tried to do but it is too late) or
2. You can deduct your excess contribution in a later year. If you missed the deadline to correct your excess HSA contribution for the tax year, you may be able to deduct it in a later year. You would report this on Form 5329. TurboTax will generate Form 5329 for you.
You can try to discuss the discrepancy with your HSA Broker to see if they can provide you with any help to remedy for their error. They should be able to initiate the withdrawal for you.
To enter this in TurboTax you can:
- Click on "Search" in the top right of your TurboTax screen
- Type "hsa" in the search box
- Select "Jump to hsa"
- Your screen will say, "Tell us about health-related accounts you had in 2024" On the screen that says "Let's enter your HSA contributions" you can indicate your excess 2023 HSA Contributions.
Your TurboTax screen will look something like this:
Click here for "Why am I showing an excess HSA contribution?"
Click here for How to File an Amended Tax Return with the IRS
Click here for How do I amend my federal tax return for a prior year?
Click here for Amending Your Income Tax Return
