Neither dependents nor full-time students are eligible to make HSA contributions, so the $300 contribution made by the employer on your daughter's behalf for 2023 is an excess contribution that is subject to penalty unless returned to your daughter by a return of excess contribution. Contact the HSA provider to obtain the corrective distribution. The $300 is taxable on your daughter's 2023 tax return and any investment gains required to accompany the returned $300 contribution will be taxable on your daughter's 2024 tax return, reported on a 2024 Form 1099-SA.
