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Deductions & credits
First, are you under an HDHP coverage now or expect to be soon? Applying the excess to next year's HSA contribution limit is the easiest way to get rid of the excess. Apply the excess carried over by making sure that you have allowed for the carryover to be used under the total HSA contribution limit.
If no HDHP coverage, then the alternative allowed by the IRS is this: Contact your HSA custodian and ask for the distribution of the excess. Do not tell them, as I think you know, that this is a withdrawal for excess contributions, but just a regular distribution.
They will send you a check for the amount (which you can spend any way you like), as well as a 1099-SA with a distribution code of '1'.
In your return, enter the 1099-SA in the HSA interview. Several things will happen:
1. The distribution amount will be added to Other Income.
2. A 20% excise tax will be added to Other Income.
3. The carryover of the excess will be gone forever(!)
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