1. In 2020, I made HSA contributions *for tax year 2019*. Are these contributions still valid and eligible for the HSA tax benefits even though we don't have a HDHP plan in 2020? I think they are, but want to confirm. yes you can contribute post 12/31/2019 for 2019 even if you don't have a HDHP in 2020
2. I forgot about the HDHP requirement for HSA contributions and made some HSA contributions in 2020 *for tax year 2020*. Some of those funds have been used for medical expenses; some have not. I now realize I shouldn't have made those contributions. I don't think this affects 2019 tax filing, but looking ahead to 2020 taxes, what is the best course of action to take given that these mistaken HSA contributions have already been made?
IRC Code sec 223(f)
(3)Excess contributions returned before due date of return
(A)In general
If any excess contribution is contributed for a taxable year to any health savings account of an individual, paragraph (2) shall not apply to distributions (ie no inclusion in gross income for removal) from the health savings accounts of such individual (to the extent such distributions do not exceed the aggregate excess contributions to all such accounts of such individual for such year) if—
(i)such distribution is received by the individual on or before the last day prescribed by law (including extensions of time) for filing such individual’s return for such taxable year, and
(ii)such distribution is accompanied by the amount of net income attributable to such excess contribution.
Any net income described in clause (ii) shall be included in the gross income of the individual for the taxable year in which it is received.
so except for having to remove any remaining excess contributions (by 2020 return due date - I wouldn't wait - people sometimes forget and then the tax law is not so forgiving) and include in gross income for 2020 any income earned on the excess contributions, you should have no other tax consequences
