Hello!
My spouse is enrolled in an HDHP plan through her work and another plan that makes us (MFJ) ineligible to contribute to HSA in 2022 and 2023.
However, the employer is unable to stop automatic contributions to an HSA. So we end up paying taxes (Schedule 1) and an excise tax (Schedule 2).
In 2022, we received $200 in employer contributions and paid the taxes mentioned above.
In 2023, we received $1,000 in employer contributions. We also withdrew $250 from the HSA for qualified medical expenses. Therefore, the HSA had a balance of $950 at the end of the year 2023.
For 2023, $1,000 will go to Schedule 1 (no issues). The question is on the excise tax. Does it apply to $1200 ($1000 from 2023 plus $200 from 2022) or does it apply to the ending balance of the HSA in 2023 (i.e., $950)?
Thank you!
