Sorry, Jerryxe, I am still not sure what you did...
"We front loaded HSA at the beginning of 2021, and when we realize the problem, we have already excess conteibuted to both 2020 and 2021. " - At the beginning of 2021, did you make contributions to 2020 and 2021?
"So we decided to carryover the excess in 2020 to 2021, and sum up, calculate 2021 total excess, and then in Mar 2021, we asked HSA custodian to withdrawal the excess to our banks." When you did your TurboTax return for tax year 2020, TurboTax reported that you had excess contributions, right? And then when TurboTax asked you what you wanted to do with it, you answered that you were not going to withdraw the excess for 2020 but were going to let it ride to 2021, right?
But, later, you wrote, "There is no 5392 in 2020, since the 2020 excess contribution was withdrawn and carryover to 2021, so 2020 does not have any excess contribution. " - So, again, you have me confused. Did you actually withdraw your 2020 excess before the due date of the return? If this was the case, then, yes, you would have not gotten a 5329 on your return for 2020. But if that is the case, what do you mean when you say , "So we decided to carryover the excess in 2020 to 2021"? These are contradictory statements, which is why I am confused.
So let me ask you to present your information a different way:
How many HSAs do you have? Do you have one for you and one for your spouse, or are you using the same one? If so, who does the one HSA belong to?
What was the code W value in box 12 on your W-2 for 2020?
What was the code W value for your spouse's W-2 for 2020?
When you did your return in TurboTax for 2020, what was the amount that TurboTax said was in excess?
What did you tell TurboTax at this point? That you would withdraw all of the excess, some of the excess, or none of it? If "some of it", what was the amount that you withdrew?
On what date did you withdraw excess for 2020 (if you did), and what was the amount?
***For your first employer in 2021***
For your 2021 W-2, what was the amount with code W in box 12 on your W-2?
For your spouse's 2021 W-2, what was the amount with code W in box 12 on your spouse's W-2?
***For your second employer in 2021***
For your 2021 W-2, what was the amount with code W in box 12 on your W-2?
For your spouse's 2021 W-2, what was the amount with code W in box 12 on your spouse's W-2?
When you did your return in TurboTax for 2021, what was the amount that TurboTax said was in excess?
What did you tell TurboTax at this point? That you would withdraw all of the excess, some of the excess, or none of it? If "some of it", what was the amount that you withdrew?
"then in Mar 2021, we asked HSA custodian to withdrawal the excess to our banks. "
OK, how much did you "withdraw"? What year did you tell the HSA custodian that it was for? Did you tell the custodian that it was an "excess contribution"?
Since then, have you asked for any other withdrawals of excess contributions? If so, on what date and for what amount?
Are either of you 55 or older?
If things like the excess are split into two numbers (i.e., one for you and one for your spouse), please indicate which spouse saw this number.
Stick with it and we will sort this out...and also remember to add "@" BILLM223" to your response (without the space in between, so I will be notified of your response...
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