f you overfunded or weren't eligible to contribute to your HSA in 2020, you'll need to withdraw the overage by April 15, 2021 to avoid a penalty (October 15 if you filed an extension).
You have options: See information below:
Leave it in and pay the 6% penalty then make the excess a 2020 contribution.
OR
Contact the HSA administrator to have the excess removed make sure they understand it is a return of excess contributions not a distribution.
Please see this explanation in full details that was prepared by @HelenC
Two Ways to remove Excess HSA
For 2020, your maximum combined contribution to an HSA – that is, the sum of what you, your employer, and anyone else contributed – is $3,550 if you're covered by an individual (self-only) HDHP and $7,100 if you're covered by a family HDHP (maximum contributions increase to $4,550 and $8,100, respectively, if you were at least 55 years of age on December 31, 2020).
For more information on HSA see link below:
What is a HSA
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