I switched jobs in 2022 and I was on a HDHP in both old and new jobs. covering only myself. My wife also has a HDHP, covering her and our kids. I misunderstood how the HSA contribution limit works and ended up contributing too much to my HSA in 2022.
Excess contribution amount is $3000. According to my 2022 W2s, $500 of that was from my old job and $2500 from my new job. I have spent the old HSA to zero on medical expenses. As of today my new HSA has a balance of $2800 and I have not used it for anything in 2023.
Because all my contributions are payroll deductions, I would have to ask for an amended W2 from my current employer when I withdraw excess contributions, so that the $2500 figure on line 12 of the W2 can be updated. My wife, who contributes the max to her HSA, says that for 2023, she can adjust her contributions to avoid excess contributions. Here's my questions:
1. Does it make sense to withdraw more than $2500 to reduce my 2022 tax burden, since that is what shows on the W2? I can't imagine the amended W2 showing a negative number.
2. I'll be getting a 2023 1099-SA stating that I made such a withdrawal. But does the $2500 get added back to my 2022 taxable income?
3. Along those lines, can I even withdraw more than $2500? And if so, what would happen to my 2022 taxes?
Thank you very much for the kind assistance!
