Background: My wife and I individually contributed to our HSA's (self-only limit) for a few years until mid-2024. We had a child, I stopped contributing, and my wife increased her contributions, to an amount we believed to be the "family max" HSA contribution limit. We were notified of an excess HSA Contribution of approximately $328 when filing 2024 taxes. I remember calling my HSA to confirm this excess, and I believe I chose the option in TurboTax to rollover the excess into my 2025 HSA contributions. (I do not recall doing any paperwork nor was I made aware of any required paperwork with my HSA to confirm this decision). My wife (the sole HSA contributor) intentionally decreased her HSA contributions in 2025 so as not to once again exceed the family maximum.
On this year's HSA tax form 1099-SA, box1 "gross distributions" show $328. Box 3 shows code 2, telling me Box 1 is from an "excess contribution".
A large part of my confusion may be from misunderstanding the language of tax forms, and by what TT is asking me. But I'm wondering if this 1099-SA is indicating I didn't manage my excess contribution from 2024 in TT correctly, or I didn't manage it correctly with my HSA, or am I on the right track and if so, what would be the correct way to complete the TurboTax HSA questionnaire so I correctly settle this with the IRS and not see it again next year?
