The formula for determining the amount of the earnings from the excess contribution is as follows:
Net Income = Contribution x Adjusted Closing Balance - Adjusted Opening Balance
Adjusted Opening Balance
The "adjusted opening balance" is the fair market value of the HSA at the beginning of the computation period plus the amount of any contributions made to the HSA during the computation period (including the contribution that is distributed as a returned contribution).
The "adjusted closing balance" is the fair market value of the HSA at the end of the computation period plus the amount of any distributions made from the HSA during the computation period.
The "computation period" is the period beginning immediately prior to the time the particular contribution is made to the HSA and ending immediately prior to the removal of the contribution being returned.
If you prefer, you can follow-up with additional information regarding how you computed the excess earnings from the over contribution. As a reminder, in any follow-up response, do not include personal identifiable information.
@Anonymous
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