My husband contributed $1000 to his HSA in February 2020 and his employer contributed $1600 in January 2020 (reported on his W-2 in box 12, code W). Husband started Medicare July 2020. Using TurboTax Premier CD, completed interview, TT says we have an excess contribution of $500. TT doesn't explain how this was calculated.
Contributions to HSA are not allowed when enrolled in Medicare. Thus, his contributions must be prorated by the number of months he is not covered by Medicare (6, for Jan thru June). So it seems to me that the excess amount should be (1000 + 1600) * 6/12 = 1300, not 500. Is this an error by TurboTax? Or am I missing something?
