@HH78DD wrote:
Why does TurboTax require to withdraw your 12W funds?
If you or your employer contributed to an HSA, and it is considered "excess" contributions (more than you are allowed), then you need to withdraw the excess or pay a penalty.
Real reasons you might have excess contributions include that you were not enrolled in a qualifying HDHP for the whole year, you were someone else's tax dependent, you contributed too much for your age and type of HDHP coverage, or you enrolled in Medicare during the year.
Reasons that Turbotax might think you have an excess even if you don't would be if you entered your payroll contributions twice (if you make payroll contributions, don't enter them later, that is only for separate contributions); or you never finished the insurance interview to tell Tubotax that you did have qualifying HDHP insurance.
