7300*7/12=4258.33
3650*5/12=1520.83
total 5779.16
- Is my understanding of the above correct? yes
- If I do option 1 above and withdraw the excess- does my employer tax me on that withdraw, or am I taxed on that withdraw when I file my 2022 taxes? note that you not only have to withdraw the excess but also the earnings thereon so you must make clear to the administrator you're withdrawing excess contributions. taxability depends on who is making the contributions. if its you through payroll deductions. the only the income is taxed becuase you get no deductionfor the excess. if it's your emloyer's contrbution it's taxable.
- If my wife gets an HSA plan in January and I move to that plan and we make contributions to her plan, do those contributions count towards my excess funding next year? excess funding is a cumulative computation. assume she starts a family plan on Jan 1 with a $7300 limit, less your $1521 from 2022 means she can contribute the $5779 and you get a total deduction for 2023 of $7300
- Based on my calculation that my new contribution limit is $5,779 and I’ve funded $7,300, what happens in the case I pay for medical expenses and my balance at year end is $2,000? Is this $2,000 still an excess since I’ve drawn my balance down below my max contribution limit of $5,779? you pay a 6% on the lesser of the excess contributions or the fair market value of the account
- Is there a dollar amount I can draw down to that wont require me to make a withdrawal or carry forward with 6% excise tax? I’m assuming not since I’ll want my W2 to reflect my new max contribution limit. if you don't withdraw the excess, the only way to void the penalty ids to spend the entire account
August 11, 2022
10:01 AM
