It's now far to late to resolve an excess 2020 HSA contribution by obtaining a return of excess contribution before the due date of the 2020 tax return (including extensions). Any excess that has carried forward from 2020 until now must be corrected by making a regular taxable HSA distribution or simply spending the HSA down to zero on qualified medical expenses. An HSA distribution is made taxable by not applying it to qualified medical expenses. (For those under age 65 at the time of the taxable distribution, the distribution is also subject to an additional 20% tax.)
