In 2016 had excess contributions and did not take any of the excess contributions out before the due date of the return. The 2016 excess contributions are carried over on IRS Form 5329 line 48 in 2017 and 2018 and we paid the 6% penalty tax and is also being carried over in 2019 too which I would like to fix going forward.
In 2017 had excess contributions and my wife and I submitted requests to remove the 2016 and 2017 excess contributions prior to the due date of the return and in the 2017 TubroTax answered yes would return all of the 2017 excess contributions before the due date. The HSA company however took too long to process the withdraw (~10 days) and the money was not actually removed until the day after the due date being April 18, 2018. These withdrawn were all actually in our 2018 1099-SAs with distribution code 2.
Because we answered that we would withdraw the 2017 excess contributions by the due date the 2017 excess contribution amount is not carried over to 2018 or 2019.
Hope this clears up the details.
