BillM223
Expert Alumni

Get your taxes done using TurboTax

The problem as I see it is that you are going to ask the old HSA custodian to send you a check (that's what "withdraw the excess" means) for the total of $400 and some odd dollars, but unless you get the money in there somehow first, the custodian will rightfully ask you, "What money?"

 

I want the paperwork at his old HSA to be clear and consistent. My concern is that it wouldn't make sense to take excess contributions from your new HSA when, in fact, you never made any excess contributions to that HSA. Besides, the new HSA didn't exist in 2020, so how can you be taking excess 2020 contributions from it?

 

No, just make the 2021 contribution to the old HSA, see if you can withdraw the excess, and close the HSA out, and declare victory.

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