Is the code W for Box 12d? HDHP enrollment is required to make contributions to an HSA (health savings account). If you have a code W (HSA contributions) in Box 12, you have received a tax benefit for the amount contributed to your HSA. However, if you are not enrolled in an HDHP, you are not entitled to receive that tax benefit.
There are penalties if you have an excess contribution to your HSA unless the excess amount is withdrawn before the due date of your return, including extensions. Contact your employer or HSA plan administrator and let them know you need to get those contributions removed before 07/15.
Although many taxpayers with HSAs initially set them up through their employer, the HSA belongs to the taxpayer, even if their employer funded 100% of the contributions. If the taxpayer leaves the company or switches their insurance to a non-HDHP, s/he can use any funds remaining in the HSA for qualified medical expenses but cannot contribute to the HSA if s/he is no longer enrolled in an HDHP. Contributions can resume once the taxpayer re-enrolls in an HDHP, assuming all other HSA conditions are met.
What is a high-deductible health plan (HDHP)?
What is a health savings account (HSA)?
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