TI9
New Member

Retirement tax questions

MARCH 2019 WE WENT FROM AN HDHP I WAS CARRYING TO A NON HDHP MY WIFE WAS ELIGIBLE FOR AFTER SHE RETIRED. I CEASED CONTRIBUTING TO MY HSA ACCOUNT AT THAT TIME. ON JANUARY 1 2019 MY EMPLOYER CONTRIBUTED 2500 TO MY HSA. I WAS ALSO PUTTING IN THE MAX AMOUNT. SOMEWHERE AROUND 100 PER WEEK. SINCE I WAS ONLY ELEIGIBLE TO CONTRIBUTE THROUGH FEBRUARY THE ACCOUNT WAS OVERFUNDED BY ABOUT 1800. I REALIZED THE ERROR AND WITHDREW THE EXCESS AND PAID THE TAXES ON IT IN 2019.

2020 TURBOTAX HOME AND BUSINESS IS ASSIGNING THE AMOUNT I PUT INTO MY 401K - BOX 12 CODE AA 1209.38 - AS CONTRIBUTIONS TO HSA . NO MATTER WHAT I DO THE PROGRAM IS TELLING ME I'VE OVERFUNDED THE HSA BY 1209 AND HAVE TO PAY TAXES ON IT PLUS 6% PENALTY. THE ACCOUNT HAS BEEN CONSUMED AND WAS CLOSED DURING 2020.

PLEASE ADVISE.

THANKS!