BillM223
Employee Tax Expert

Get your taxes done using TurboTax

The excess HSA contribution is calculated on an annual basis, so you can ignore the situation if your 24 pay period don't align with the first of the months.

 

The amount you should have calculated for your allowed HSA contribution would be 6/12ths of the total possible contribution (so $9,550 divided by 2 = $4,750.00). Since the allowed contribution would be 1/2 of the total possible contribution (the $9,550), you will need to withdraw about $4,799.84 (the difference between $9,549.84 and $4,750.00).

 

Note that in any case, you should withdraw the amount that TurboTax tells you is in excess. I am only describing how TurboTax arrived at this number.

 

Now, you may have rounding errors because your pay seems to vary by one cent from pay period to pay period, so let TurboTax doe the calculation.

 

Don't withdraw any more than what TurboTax reports as the excess (because this is not allowed by the IRS), but you can withdraw less, if you want to carry over some of the excess to next year (tax year 2026).

 

I strongly suggest withdrawing the entire amount that TurboTax reports as excess, if you have the funds to do it. The result is simpler all around (really).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"