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@LenaHThank you so much for the detailed explanation! That was super helpful. I really appreciate your time — and sorry for the follow-up questions:

My wife worked for a company (Job 1) until March 2025, then moved to Job 2 (still active), and she plans to start Job 3 next month (in August 2025).

  • For Job 1, she had HDHP coverage and both she and her employer contributed to her HSA.

  • For Job 2, she also has HDHP and made HSA contributions, and the employer contributed as well.

Given your explanation that she was ineligible for an HSA for all of 2025 due to my Healthcare FSA, I understand that all HSA contributions this year are considered excess and need to be withdrawn.

I have a few specific questions:


(1) When you say she needs to withdraw the full amount of 2025 contributions (plus earnings), does that include:

  • both her own contributions and employer contributions?

  • Or just her own contributions?


(2) If employer contributions also need to be withdrawn:

  • Does she need to repay those to the employers (especially Job 1, which she already left)?

  • Or does she just coordinate with the HSA provider (Fidelity) to withdraw the full amount including employer portions?


(3) For Job 3 (starting in August):

  • The company offers a generous employer HSA contribution if she enrolls in their HDHP.

  • However, based on this situation, it seems she shouldn’t enroll in HDHP + HSA at all, even if she opts out of contributing herself — is that correct?

  • In that case, would it be safer to choose a non-HSA plan, just in case the employer auto-contributes?

 

(4) What if we’ve already spent some of this year’s contributions from the HSA accounts tied to Job 1 and Job 2 earlier in 2025? If we continue to spend from those 2025 contributions, would those amounts still count as part of the excess and need to be repaid? Or are funds already used (or to be used later in 2025) treated differently when determining and correcting the excess?

 

(5) Lastly, when we file our 2025 taxes early next year, is there anything we need to address in particular around this issue? For example, are there specific tax forms (e.g. 1099-SA or 8889) we should expect from Fidelity or include in TurboTax to reflect the withdrawal of excess contributions?

 

 

Thanks again! @LenaH