Thanks Mike9241. The contributions were 100% funded through payroll deductions. My employer did not contribute anything. A few follow up questions.
1. When I complete the excess withdrawal form for my administrator, do they calculate the excess earnings as well, or do I need to calculate that?
2. I let my employer know I made a $1,521 excess withdrawal from my HSA- do they record that and tax me through my next paycheck? Or do I pay income taxes on that when I file my 2022 taxes?
3. Say my earnings on the excess is $3, do I include that amount when letting my employer know of the excess contribution withdrawal?
This brought up a few questions on a parallel subject. My wife's employer reimburses her up to $1,800 for medical expenses (I believe it's an FSA arrangement, but the business just cut her a check for $1,800 after providing an itemized receipt of my surgery bill). In her benefits package she was given $1,800 to spend on medical or childcare expenses, but required to submit itemized receipts for reimbursement. They manage this themselves, not through a 3rd party. Through her previous employer, she had an HSA which she contributed $100 Jan-Mar ($300 total for 2022). Her total balance was $1,185.58. She withdrew that entire $1,185.58 balance to pay for my medical bills and close her HSA account, which is now at $0.
1. How does the $1,800 FSA reimbursement play into our taxes? Does this affect my excess HSA funding in any way?
2. Since she contributed $300 this year to her prior HSA, but reimbursed herself her entire $1,185.58 HSA balance for my medical bills, does this affect my excess contributions since her account balance is now $0.
3. Based on this, does my excess contribution withdrawal of $1,521 originally calculated still apply now, or do I need to withdraw more? How does this second part of my wife's FSA and HSA play into our taxes?
