@Opus 17 Thanks, this is very helpful. This discussions spurred me to look at the instructions for Form 5329. For line 47, they say:
"If you timely filed your return without withdrawing the excess contributions, you can still make the withdrawal no later than 6 months after the due date of your tax return, excluding extensions. If you do, file an amended return with “Filed pursuant to section 301.9100-2” entered at the top. Report any related earnings for 2023 on the amended return and include an explanation of the withdrawal. Make any other necessary changes on the amended return."
In addition to regular income tax for 2023, I suppose I still have to pay the 6% excise tax (because I already filed timely without extension). But it sounds like I otherwise wipe the slate clean going forward and avoid the additional 20% tax for a non-qualified distribution.
Is that correct?
If that's not correct, can any future medically-qualified distributions from the HSA be counted first against the excess contributions? (So that the 6% excise tax goes away, even though the HSA still has remaining funds.)
