dmertz
Level 15

Retirement tax questions

It appears that @MindyB  overlooked the fact that you have separate self-only coverage, not family coverage.  The fact that you do not have family coverage means that each of you is separately subject to the self-only contribution limit, not the contribution limit for family coverage, and must separately obtain returns of contributions from each of your HSAs.

 

The method described in CFR 1.408-11 is used to calculate the net income attributable to the excess contribution being returned.

 

https://www.law.cornell.edu/cfr/text/26/1.408-11

 

You'll likely have to sell shares to have the cash necessary to make the corrective distribution.