@dmertz wrote:
To avoid the 6% excess contribution penalty you can obtain a return of the excess contribution before the due date of your 2020 tax return and then just make normal HSA contributions for 2021.
The customer may be thinking of a situation where the HSA bank makes a return of excess contribution for 2020, but instead of sending a check back to the account holder, they keep the money and re-deposit it into the account as a 2021 contribution. (In other words, 2 separate transactions. but the money never gets to the customer in between). (This is not a "rollover" as that term has a different meaning.)
In this case, how is it handled on the tax return?
