I filed our joint tax return for 2019 and received returns before the deadline, but my wife had excess HSA contributions due to her HSA eligibility change when she changed her job last year and forgot to take the excess out by the deadline. What are our options now? (can't leave excess for future contribution because no longer has HDHP to make contributions and don't want to keep paying tax/penalty every year)
Since it had passed 7/15, it is too late for her HSA (according to the HSA rep.) to directly take it out of her HSA account and there's nothing they can/have to do at this point. Can someone list out the steps that we need to do to fix this on the tax end? (We're aware of tax/6% penalty fee but how to calculate/ apply, etc. But if we can take it out and since is not for medical expense (will the penalty be 20%). Also, do we have to file an amended tax return for 2019 to include the excess contribution?)
Also, HSA will not advise on earnings from excess. How do I calculate this? We never had our contribution invested into any funds. It is just in the HSA account. The only thing I can see earning is the $0.10 monthly interest (I assume we include all interests since she lost her HSA eligibility up until we can take out the excess contribution)!
Thank you!
