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Retirement tax questions
The problem with your broker's advice is that the HSA rollover cannot be more than the allowed contribution to your HSA. In 2022, you can contribute up to $3,650 if you have health coverage just for yourself or $7,300 if you have coverage for your family. If you are over the age of 55, there is a $1000 additional contribution that is allowed.
What you might do is to request your broker return the excess contribution to the HSA. If you file an extension for your return and pay all taxes due 9if any), you have until October 18, 2023 for that excess contribution to be returned to you.. If the return contribution is returned before Oct 18, you can go back to that question that asked if the excess was removed by April 18, here you will say yes.
For 2023, you should receive a taxable document reporting the excess contribution returned, which include the earnings and you can wait until then to report the earnings. The excess earnings amount will be reported in 2023 in a 1099-SA, with the amount of the original excess in box 1, the earnings in box 2, and a '2' distribution code in box 3.
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