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tonycc44
New Member

complicated excess HSA situation

My wife started off with an HSA until March from her insurance.

 

We switched to my insurance from a new job afterwards.

 

She contributed 2841 (from her payroll).

 

I ended up contributing 9698 (through my payroll), asked for 3249 back which I received the 1099SA from the HSA.  side note: What is also strange is that my W2 reports 7898 in box 12 (K).

 

I've just realized that we are still far over the limit (not sure if I should go by contributions or the w2).

 

Do I ask my HSA for another excess distribution for 2023?  What is the easiest way to fix this situation?

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1 Reply
DavidD66
Expert Alumni

complicated excess HSA situation

You qualify for the maximum family contribution under the Last Month Rule.  If you are eligible to contribute to an HSA on the first day of the last month of your tax year, you are considered eligible for the entire year, provided you stay enrolled in an HSA qualifying HDHP.   There is a testing period of twelve months. This means you must stay eligible through the end of the next year (2024), or you will be subject to taxes and penalties. 

 

Under the Last Month rule, you can contribute a combined total of $7,850 to your HSA accounts, plus an additional $1,000 if you are 55 or older.  You need to determine the correct amount that was contributed to your HSA.  It should have been reported in Box 12 of your W-2 using code W.  It would include any amount contributed by your employer, as well as what you had payroll deducted.  The $7,850 total includes both your contributions and your employer's.   You will then need to request an additional distribution of excess contribution from one or both HSAs.  

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