Greetings! I have an excess HSA contribution and am trying to determine the excess earnings calculation in order to fill out the form for HSA Bank to return the funds to me.
HSA Bank told me the amount should be the interest rate of .15% on the excess contribution.
However that does not seem to match up with the IRS calculation.
Should the Adjusted Opening Balance include subsequent contributions plus interest?
Thank you for any quidance...
Here is an example with an excess contribution of 150.00 to illustrate my questions/confusion here.
Adjusted Opening Balance:
Balance before the overage contribution as of 10/31 = 1000.
Contributions since 10/31 = 100.00 + 200.00
Interest since 10/31 = 1.00 + 1.10
Opening Balance could be 1000 + 100 + 200 = 1300
OR 1000 + 100 + 200 + 1.00 + 1.10 = 1302.10
Should the Opening Balance include interest?
Adjusted Closing Balance:
Balance as of 12/31 = 1302.10
- Per HSA 150.00 * .0015 = .225
- Per IRS calculation without using Interest, 150 ((1302.10-1300)/1300) = .242295
- Per IRS calculation using Interest, 150 ((1302.10-1302.10)/1302.10) = 0
