My wife had an HSA for the last 10 months of 2018 and the first 2 months of 2019, when she turned 65 and was no longer eligible. I entered the W-2, box 12 information and then entered the distribution information for 2019. Her employer had reported that their was a contribution made in 2019 for 2018 of $144. This was included in the box 12 amount of $575 for 2019.
TurboTax showed a contribution limit of $750 for 2019 which is in excess of the contributed amount of $575. But then Turbo Tax showed there was an excess contribution of $256 which should be withdrawn from the account.
How is this excess contribution calculated since the contribution amount was only $575 and the contribution limit was $750?
All contributions into the HSA were used in 2019 for qualified expenses and there are no funds available to be withdrawn.
