'First, you will need to determine at what point over the year, your contributions became excess. You start your earnings calculation from that date with the amount that is excess' I was aware of the excess during early Feb 2024 while working on my 2024 tax return. I would say around Feb 8, 2024. So, to put that into the time line, it will be like this
About 2024 HSA Contribution activity
- 02/01/2024 - retired from work
- July 2024 - I initiated a transfer of existing HSA account balance from my company HSA custodian to Fidelity
- 08/15/2024 - HSA account balance has been settled with Fidelity
- 08/15/2024 - I made remaining 2024 contribution amount $4,175
- 02/8/2024 - became aware of $999 excess amount
- 02/13/2025 - excess amount with drew $999
I can see all transactions from Fidelity portal, I know the fund name, #shares sell price on 2/13/24. In this case, I would think that Earning$ = [#Shares Sold] * [price diff between 8-13 Feb 24]
I would appreciate your advice on next steps, i.e.,
- To produce the corrected version of 1099-SA form, i.e., can I get a blank form from T.Tax desktop version and fill it.
- Do I need to submit it along with Form 5498-SA as well? (any advice on how to fill it correctly?)
- Lastly, how to I submit them? I'm not sure if there is a way to incorporate it into T.Tax 2025 that I am working on or I have to print and mail it in?
Also another point about $50 T.Tax tells me today as excess for 2025 HSA contribution ☹️
For this, I will ask Fidelity to provide excess distribution, I assume I should be getting their 1099-SA with code 2 and once I entered this into T.Tax then it should detect this automatically. Once that is done, then I can e-file my 2025 stuff. Is my understanding correct?
Thanks again for your advice,
