My employer made a mistake and contributed $100 extra to my HSA account in 2017 (above $3400). Realizing the mistake I contacted my employer (who wouldn't do anything) and my HSA provider (who took it out of the account in 1/3/2018). Currently my W-2 form still reports $3500 under 12a and my 1099-SA still only shows normal distribution amount I used in 2017 (box 1 and code 1). I called my HSA provider asking for a revised 1099-SA with the "excessive contribution" report; however, they said they would not update the system until April so they couldn't provide the information but I can still go ahead and report to IRS that I took out the excess contribution. Now my question is:
1. Should I report that I actually took out the excess contribution somehow? If so, should I enter 2 HSA accounts (one with normal distribution code and one with excess contribution code) or should I enter 1 HSA account (report normal distribution from box 1 and excess contribution from box 2 and use the distribution code 2).
2. Should I just NOT report that I actually took out the excess contribution already before tax date and report it on next year's return? (aka get penalized for now)
Thanks!
