Why does TTax say my HSA is overfunded when it's not? I do not get a W-2, only 1099's and the 2015 return has no entry on the 5329 line 48.

[hokiemonvt]

I didn't have this problem in 2015, so why now?

[BMcCalpin · Accepted solution]

One of the purposes of the HSA interview is to determine your annual HSA contribution limit.

As you probably know, the maximum limits in 2016 are:

• $3,350 - individual with self-coverage
• $6,750 - individual with family coverage
• If the HSA owner is 55 or older, then you add $1,000 to these amounts.

However, these limits assume that you were in an HSA all year. If you left the HSA during the year or started Medicare or had one of a number of change events, then the limit is reduced.

Thus, if you did not complete the HSA interview - that is, go all the way until you are returned to the "Your Tax Breaks" page - the limit still might be set to zero, causes a misleading excess contribution message.

Did you make any contributions at all to the HSA? Go ahead and repeat the interview, checking your answers, and go to the end.