My husband and I didn't realize that we could only contribute the total Family amount to our HSA in 2021 and 2022. We Contributed 2800 excess in 2021 and didn't withdraw it and took the penality tax 6%. For 2022 we still didnt fully understand the limit to see had an additional 2785. We also now realize the 2800 from 2021 was applied to our 2022 limit so we had a total excess of 5585 from 2021 and 2022. In 2022 I contributed 3485 and my husband contributed 6600 which put us over the 7300 limit by 2785, then the 2800 excess from 2021. . We are filling out a form with our HSA to withdraw the 2785 for 2022. We have also stopped contributions in 2023 to limit the remained excess and possibly eliminate it by 2023.
On the page Who made the excess HSA contribution?
it says "You contributed $5,585 more to your HSAs than you were allowed. From this amount, you may allocate $4,885 of excess contribution between you. Who should we treat as having made the excess contribution of $4,885?" We split this number evenly between the my husband and I.
Were does the 4885 come from? it's $700 less than the excess. i can't figure out how they determined 4885. Last year we split the 2800 excess evenly so both had 1400 in excess contributation in 5329 form.
Later in the process it says i can withdraw 1043 which makes sense 2443(excess from 2022 for me) - 1400 (excess from 2021 for me). my husband can withdraw 700 more. 1742 which is the remained of our total excess 5885 - 2800 (from 2021 which we can't withdraw) and my excess of 1043. Just not sure why they automatically detmined he gets the additional 700 to width draw.
