Retirement tax questions

First confirm that you have excess contribution. For 2023, the maximum combined total that you, your employer, and/or any other eligible person can contribute to your HSA account is:

• $3,850 if you're under 55 at the end of 2023 and are covered by an individual (self-only) HDHP;
• $7,750 if you're under 55 at the end of 2023 and are covered by a family HDHP;
• $4,850 if you're 55 or older at the end of 2023 and are covered by an individual (self-only) HDHP;
• $8,750 if you're 55 or older at the end of 2023 and are covered by a family HDHP.

The above limits are prorated depending on the number of months you were covered by an HDHP and had no additional health coverage.

Excess HSA contribution?

I recommend revisiting the HSA entry screens to make sure the excess contribution wasn't due to an entry error. Here's how:

1. Open or continue your return.
2. Search for hsa and select Jump to hsa.
3. Answer the questions until you get to the Let's enter your HSA contributions screen.
4. Make sure you didn't accidentally re-enter the amount already listed (from box 12 of your W-2) as this will incorrectly double your total contribution amount.
5. Continue through the HSA screens, making sure you answered all questions correctly

If it is not an entry error, you have a couple of options to possibly correct it:

1.Withdraw your excess health savings account contribution: You have till April 15th to make the correction. 

2.Move your excess health savings account contribution to next year. You can roll forward your excess contribution and use part of next year's contribution limit.

3.Pay taxes on excess contributions and earnings. You will owe taxes on the extra cash your employer contributed, along with a 6% excise tax.

[ Edited, 02/21/2024 6:49AM,PST]