Thanks! Just to clarify, am I understanding that “excess contribution” is a specific term which applies specifically to situations where you contribute more than the maximum, separate from the last month rule? If so, that wasn’t actually the terminology used by my HSA provider. They basically implied there would be no fees or extra taxes if I switch to a different insurance plan on December 1. Based on your response, I think my understanding, wrong terminology aside, seems like it’s in the right direction. You confirmed the 10% applies to the amount over $575. Do I also need to pay my marginal tax rate on the extra $425? Is that now considered income or does the fact the it’s an employer contribution make it be treated differently?
