I came to realize in late 2024 that I was ineligible to contribute to my HSA but I made contributions in 2023 and 2024. In an effort to remove these excess contributions, I submitted for an excess contribution distribution for 2023 (was issued in December 2024) and 2024 (was issued in January 2025).
I amended my 2023 filing to show that I had 3,850 of excess contributions, and paid the taxes and the 6% penalty on these, so I think I am okay there.
I have a few questions that I would like to clarify:
1) I think I was given bad advice by the HSA administrator when submitting the 2023 excess contribution forms. I was led to believe that Excess Contribution was the right form, but if I understand correctly, the time had lapsed too far and I should have submitted something different. This resulted in a 1099-SA with "2" in Box 3, so TurboTax is confused and thinks I still have the original 3,850 from 2023. I believe I should have zero excess contributions as of 12/31/2024, as I withdrew 2023 by then and (correctly) withdrew the 2024 excess in January 2025. Do I need to request an amended form of some kind to fix the 2023 contributions returned to me? I'm not sure if I also submitted the incorrect amount on contributions, because the 1099-SA Box 1 says 4,098.30 and Box 2 is 0.78, but should Box 1 be the even 3,850 and all earnings in Box 2 instead?
2) The account was cleared out as of early January 2025, so I feel confident there. However, when (correctly) submitting the 2024 excess contribution request, I might have also made the same mistake that I had for 2023 and submitted contributions + earnings instead of just earnings. I fear this might result in my Box 1 and Box 2 of the 2025 1099-SA being incorrect. For the purposes of TurboTax, will this create an issue when filing 2025 taxes in 2026? Will I need to work with the administrator to fix this too before then?
Thank you!
Yes
No
