In 2019, I had an excess HSA contribution in the amount of $X. I did not withdraw this distribution prior to filing my 2019 taxes, so I paid the 6% excise tax. I am now trying to correct my error by requesting a distribution of excess HSA contributions from my HSA provider.
a) I am told that I can request to withdraw $X for 2019, even though the 2019 tax year has passed. If I go this route, then how do I report this in turbotax? When asked to enter the amount from line 48 of my 2019 From 5329, which is the excess contribution from 2019, if put $X, then turbotax does not understand that I corrected things and still shows a 6% excise tax. Should I put $0 here then? I was informed by my HSA provider that the type 2 1099-SA will not be produced until after the tax deadline is over.
b) I was told that I am unable to correct for the 2019 excess contribution since 2019 tax season has passed. If this is the case, I can correct for the same amount, $X, in my 2020 HSA account. I have already maxed out my 2020 HSA account, so in order to roll over my excess 2019 contributions to count in 2020, I will have to withdraw $X from 2020. Again, how do I report this in turbotax? When asked to enter the amount from line 48 of my 2019 From 5329, which is the excess contribution from 2019, should I put $0, or $X? My W2 currently shows the max contribution was reached in 2020, so I don't know how turbo tax will recognize that the 2019 excess contribution is counting towards 2020. I was informed by my HSA provider that the type 2 1099-SA will not be produced until after the tax deadline is over.
c) Can I correct my excess contribution for 2019 by requesting to withdraw $X for 2019 from my HSA provider, even though the 2019 tax year has passed (i.e. option a)? Or must I request to withdraw $X for 2020 (i.e. option b)?
