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Retirement tax questions
As I said previously, you must file an amended 2018 tax return to include Form 5329 and pay the 6% excess contribution penalty on the $2633 excess contribution for 2018.
If before the end of 2019 you fully deplete your HSA, leaving a balance of zero, by applying the money to qualified medical expenses the excess contribution penalty for 2019 will be zero because the penalty is 6% of the lesser of the excess or your year-end balance. The only way that your HSA balance could ever later become nonzero and cause the excess to come back to haunt you is if you inherit an HSA from your spouse.
‎November 26, 2019
12:19 PM