@AlwaysLost wrote:
The $150 won't put me in excess for the year 2023. However, one thing of note is that I've only removed $400 in excess when I filed the return of excess earlier this year -- because I guess the person I spoke to in January gave me to an incorrect number I guess (?). Does that mean I should file another return of excess for $50?
Thanks!
Assuming I understand everything you've said, then yes, you need to remove another $50.
Note that for 2025, if you are under age 55, the contribution limits are $4150 for self-only HDHP and $8300 for family HDHP. So you can just review your 2024 contributions and what you already removed, to make sure that extra $50 is correct.
And as I recall, you are still in the middle of preparing your tax return, correct? So if you enter your W-2s as is, and make the correction for the 2023 contribution from employer #1, the program should tell you exactly what you need to remove to avoid a penalty. If the programs says to remove $450, and you removed $400, you need to contact the HSA bank to remove another $50.
And also remember, if that money earned interest, the bank will return that to you as well, and that interest is taxable income on your 2024 return even though it is technically being paid to you in 2025.
