In 2022 I overfunded my HSA by $149. TurboTax applied 6% fee (form 5329) on that money and also added the $149 back into line 8 of 1040 Other Income.
In 2023 that same $149 was carried over and I again paid the 6% fee (form 5329). I was advised by TurboTax advisor to withdraw the $149 from my HSA from 2022 as soon as possible to stop the 6% from happening again in 2024. In March 2024 I withdrew $149 and was sent a 1099-SA form for that amount plus $1 for earnings.
I am now filing my 2024 taxes and after entering 1099-SA information the same 6% is being calculated and appears will also happen in 2025 and beyond.
How do I fix this once and for all? Please note that I had an high deductible plan from Jan-July 2022 but did not have high deductible plan in 2023 or 2024.
Any help is appreciated. Thanks!
