BillM223
Expert Alumni

Deductions & credits

You evidently had excess contributions for tax year 2021. If you don't withdraw them by the due date of the 2021 return, then you are unable to "fix" the excess as easily as just withdrawing the excess.

 

The usual way to address this is to reduce your HSA contributions in a future year so that your excess (now referred to as a carryover) plus your current year is less than the annual HSA contribution limit for that year. The carryover acts like a personal contribution in that future year.

 

Because people do not realize this and still maximize their regular HSA contributions, they end up perpetuating the excess from year to year.

 

So, you can't fix this immediately, but can fix this even for 2023 if you ask your employer to cut back on the HSA contributions for this year (if you need to).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post