HSA and Medicare part A

[carbrigbuch]

Mu husband turned 65 on 09/30/2023. He enrolled in Medicare Part A. He contributed to the HSA until 12/31/2023.  Turbo tax is telling me that we have an excess contribution.  We either have to withdraw or pay 6%.

Not sure how to answer the questions in Turbo Tax.  Please advise!

Thank you

Carmen

[DavidD66]

To be eligible for an HSA you cannot be enrolled in Medicare (you are HSA-eligible for the months before being covered by Medicare).  If your husband's Medicare coverage began in October, the maximum contribution he could make to an HSA is 9/12 of $4,850 = $3,637.50 if a individual plan or 9/12 of $8,750 = $5,887.50 if a family plan.  If he contributed more than that it is an excess contribution and will be subject to a 6% excise tax for each year until it is removed.  If it is removed before the due date of your tax return it will not be subject to the tax.  What question(s) do you not know how to answer?