In 2016 and 2017 we had contributed over the HSA limit and in 2017 removed the excess amount for both 2016 and 2017. Since then we have contributed the max each year. The problem is the excess amount from 2016 continues to propagate into each tax return requiring us to pay the 6% tax however we have already removed the excess 2016 amount from our HSA. I have read that we should have let the 2016 excess stay in the account and then contribute the limit minus the amount of the excess, but we have already withdrew the excess. I am not concerned about the prior years that we paid tax on the excess from 2016 even though we removed it from our HSA. How can we fix our taxes so that the 2016 excess no longer shows up on our 2019 tax return (since the excess amount has been removed already) and we can file our 2019 tax return without the 6% tax on the 2016 excess HSA contributions?
