wyo_vern
New Member

Excess Contributions to an HSA Account

I filled for MediCare starting July 2024 the last week of June 2024.  Since I am over 65 years old the MediCare look back period went back to November 2023.  I knew about the six month look back so I stopped all HSA contributions in 2024, however, I did not start the calculation with correct month.  I was undergoing cancer treatments at the time and they lasted until November 2024.  In November 2024 I calculated the excess and income on that excess and requested a distribution from my HSA bank.  Since I was past six months filing my return, I drafted a 1040X reporting the excess contribution.  Now that I am working on the 2024 return, TurboTax shows the excess as a 2024 contribution and adds the 6% penalty.  It does not allow me to show that I have timely withdrawn the excess so the 2025 tax return would do the same again next year. 

 

What am I missing?

Why do I have to pay tax twice on the same excess even though I done the withdrawal and paid taxes on it?

My account balance is far too large to reasonably reduce to zero.

 

Thanks