Hi!
I was very careless and totally missed the pro rate rule on HSA contribution limit and want to see if I can fix this.
My current situation:
2021 December: contributed $3600 thinking that I would stay with this job for few years.
2022 July: becomes part time and miss out on med insurance. No more HDHP. Front loaded HSA to $3650.
I understand I failed the testing period for the year 2021, and as a result, ended up over contributing
2021: $3300
2022: $1823
I was hoping that I would just amend 2021 tax return to have form 5329 and withdraw $5123 but turbotax says I cannot withdraw 2021's excess contribution.
At this point, what is the best way to approach this?
Withdraw $1823 and take non-qualified withdrawal of excess amount for 2021 ($3300)? How do I report this on the tax return?
Thank you so much for your help.
