Yes. The excess contributions are subject to the 6% excise tax and income tax. The only way to avoid the 6% excise tax is to withdraw the excess contributions by the due date of the return, which is not an option since the excess was spent on medical expenses.
For 2020, the maximum combined total that you, your employer, and/or any other eligible person can contribute to your HSA account is:
- $3,550 if you're under 55 at the end of 2020 and are covered by an individual (self-only) HDHP;
- $7,100 if you're under 55 at the end of 2020 and are covered by a family HDHP;
- $4,550 if you're 55 or older at the end of 2020 and are covered by an individual (self-only) HDHP;
- $8,100 if you're 55 or older at the end of 2020 and are covered by a family HDHP.
Spouses on separate plans: The $7,100 family limit applies to married couples even if one spouse is covered by a family plan and the other spouse has their own individual plan. In this scenario, the couple may split their respective contributions any way they like, as long as the couple's total contribution doesn't exceed $7,100. (Spouses 55 or older at the end of 2020 are allowed to contribute an additional $1,000 to their own HSA.)
Publication 969
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