If Excess employer contributions withdrawn has an amount but I didn't withdraw any money, how do I reset this? I've tried removing the 1099-SA and W2 but it doesn't work.

[BillM223]

Occasionally there are fields in TurboTax that you can't get back to, due to the dynamic nature of the order of input screens. This is one example, because no matter how hard you try, you can't get back to that screen to enter a different number.

The solution is to delete all HSA data in your return and restart the HSA interview. This will clear that "hidden" number. Please do the following:

1. make a copy of your W-2(s) (if you don't have the paper copies)

2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)

*** Desktop***

3. go to View (at the top), choose Forms, and select the desired form. Note the Delete Form button at the bottom of the screen.

*** Online ***

3. go to Tax Tools (on the left), and navigate to Tools->Delete a form

4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)

5. go back and re-add your W-2(s), preferably adding them manually

6. go back and redo the entire HSA interview.

[zauschhaus]

@BillM223 I just tried this and it didn't make a difference. I'm still showing "Excess employer contributions withdrawn" with a balance on the "Your HSA summary" page. Any other ideas?

[BillM223]

The only times the "reset" procedure does not work is if you did a rollover of funds from an IRA to you HSA (called an HSA funding distribution), but that is so rare I don't even mention it. By some miracle are you rolling over money from an IRA to an HSA (this would be on a 1099-R)?

OK, are you using the Online or CD/download products?

[zauschhaus]

No rollovers here! Online product here.

[RobertB4444]

Maximum HSA contributions for 2021 are $3,600 for individuals and $7,200 if you had a family plan.  If you have code W on your W-2 in box 12 and an amount greater than $3,600 if you are single or $7,200 if you have a family HSA then you would trigger the 'excess contributions by employer' in the program.  If you have greater than $3,600 and you checked the box for a single HSA instead of a family HSA you would trigger the 'excess contributions' as well.

Please make sure that none of these is correct.

[zauschhaus]

Total contributions do not exceed either of these! Baffled by what the issue is here.

[BillM223]

Could you do me a favor? Could you do the following:

1. Tell me the code W amount in box 12 on your W-2 (if any).

2. Tell me the amount of personal contributions (i.e., contributions not through your employer) (if any).

3. Tell me the type of HDHP policy (Family or Self) and for which months.

4. Do a screen shot (if you can) of the HSA Summary screen, like the one below. Please be sure to redact any personally identifying information (don't worry about my screen shot - it's a completely fake test account).

At the end of your response, please add "@" and "BILLM223" (without the space in between) to let me know that you have responded.

[zauschhaus]

@BillM223 Thanks for your continued help with this issue. My answers are in bold underlined below.

1. Tell me the code W amount in box 12 on your W-2 (if any). $2,400

2. Tell me the amount of personal contributions (i.e., contributions not through your employer) (if any). $0

3. Tell me the type of HDHP policy (Family or Self) and for which months. Family

4. Do a screen shot (if you can) of the HSA Summary screen, like the one below. Please be sure to redact any personally identifying information (don't worry about my screen shot - it's a completely fake test account). See below

Thanks again @BillM223!

[BillM223]

When you went through the steps, finally deleted the 8889-T and 8889-S as instructed, did you look to see if the 8889-T and 8889-S actually went away?

For example, if you have the code W in box 12 on your W-2, and you don't delete the W-2, then when the 8889-T is deleted, it won't actually go away - it will come right back to the list. This means that the data for your HSA doesn't go away, including the excess employer contributions withdrawn.

I have never seen this not work (except for the IRS to HSA funding distribution).

Here's a thought - when you delete the W-2, the 1099-SA(s), and the 8889-T and -S, if there is a 5329-T or a 5329-S, would you delete that as well, and come back and tell me what happened? Thanks!

@zauschhaus

[zauschhaus]

I've (twice now) deleted the W2 and 1099-SA, logged out, logged back in, then re-added both. The excess employer contributions still shows up. The only other form I have is 5498-SA, but that information is duplicative of the amount on the W2 in box 12 code W.

I don't have: 8889-T and 8889-S OR 5329-T or a 5329-S.

@BillM223 

[BillM223 · Accepted solution]

"I don't have: 8889-T and 8889-S OR 5329-T or a 5329-S." I assume that you mean no 8889-T and no 8889-S after you have deleted them, right? If you didn't have them before you deleted them, then we have a different issue.

OK, I am going to suggest a way of clearing that number that is a bit dangerous, but nothing else seems to work, so here goes:

1. On your W-2, increase the code W amount in box 12 by a ridiculous number, like $10,000. You want to force a large excess employer contribution.

2. Get into the HSA interview.

3. Soon you will come to the screen that says, "You may want to withdraw money from your HSAs". Check the bottom option: "No, we're not going to make this withdrawal."

4. Keep going to the HSA Summary. You should see that the bottom line ("Excess employer contributions withdrawn") should be zero for both spouses (if you are filing Married Joint). This is because you are not withdrawing the excess but carrying it over to next year.

5. NOW (and this is important), do the reset procedure again (delete W-2, delete 1099-SA (if any), delete 8889-T and -S (if one), and any 5239-T and -S (if any). The 5239 reports on the penalty on carrying over excess contributions to next year, which your choice on step 3 forced.

6. Once that is done, now go back and add the W-2 and go through the HSA interview again and see if the HSA Summary looks correct now.

[zauschhaus]

@BillM223 I don't have those forms. Never received, never entered.

[BillM223]

"8889-T and 8889-S OR 5329-T or a 5329-S."

The 8889-T and -S report your HSA activity. You don't receive them; they are generated automatically (well, the 8889-T is, the 8889-S is generated only for your spouse).

Ditto with the 5329-T and -S - they are generated automatically by TurboTax if you have one of a variety of conditions in which you owe penalties of one sort or another. In this case, when you indicated that you would carry over the excess, this would have triggered the 5329-T because the carryover is penalized at 6%.

So you would not have received any of these forms...but at the very least, entering any HSA data would have created the 8889-T.

So, what happened when you did the last sequence of things I asked you to do: the huge excess value on on your W-2 in box 12 with a code of W?

@zauschhaus

[zauschhaus]

@BillM223 you are a the best - that 'nuclear' option worked! Now this is what I see:

Thank you SO much. Take care!