I turned 65 in Feb. 2020 and retired in June. Both my employer and I contributed to my HSA Jan through May. My medicare coverage started in Feb so any contributions made after January are considered excess.
Turbotax and my HSA administrator seem to differ on the excess contribution amount. On Jan 1st. 2020 my employer contributed a $1,000 lump sum to my HSA account while the rest of the contributions were paycheck deductions.
Since I was only eligible to contribute for the month of January, Turbotax took the $8,100 yearly contribution amount and divided it by 12 calculating my Jan 2020 contribution should have been $675. My total contribution for 2020 was $4,004 so Turbotax calculated my excess contribution to be 4,004 - 675 = $3,329.
My HSA administrator is using the actual contribution dates to calculate the excess. Actual contribution in Jan was $1,819.24 (includes $1,000 employer contribution) so they calculate that my excess as 4,004 - 1,819.24 = $2,184.76.
Any idea which is the correct calculation and how to fix it? Is the excess based on actual contribution dates or yearly averages?
Following are the details of my actual 2020 contributions.
Jan 2020 = 1,819.24 (1000 employer + 819.24 employee)
Feb 2020 = 546.16 (employee)
Mar 2020 = 546.16 (employee)
Apr 2020 = 546.16 (employee)
May 2020 = 546.16 (employee)
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Total 2020 Contribution 4003.88 (Matches Box 12 of W2 form)
