topic Re: HSA "overcontribution" in Get your taxes done using TurboTax

HSA "overcontribution"

martaxes — Mon, 09 Mar 2026 05:57:44 GMT

Hello!
So I'm a bit confused because turbotax is telling me that my HSA has been overcontributed to.
I feel like it is an error due to the fact that I have Medi-Cal (so I put yes to having Medicare) as well as a HDHP.
The section where we are able to put whether we were "self only", "family plan" and "medicare or none" it says to put "medicare or none" if I had both that month.
However, I had Medi-Cal the entire year and my HDHP started in October, so all of the boxes are "medicare or none".

What do you guys think? Am I still going to face the 6% tax? I don't want to withdraw from my account when it might just be an error in how the questions are set up on the site.

Re: HSA "overcontribution"

JohnW152 — Wed, 16 Feb 2022 18:25:49 GMT

Those may be valid issues, but before you get too involved with them, you may want to review your entries. There’s a common issue involved with HSA contributions that you might be seeing.

Please see the TurboTax Help article Why am I showing an excess HSA contribution in 2021? for information on what to look for.

If your 2021 HSA contribution exceeds the allowable amount, the excess must be withdrawn by April 18, 2022 to avoid a penalty (October 15 if you filed an extension).

Re: HSA "overcontribution"

dmertz — Thu, 17 Feb 2022 17:44:22 GMT

Being covered by Medi-Cal (Medicaid) the entire year makes you ineligible to contribute to an HSA for 2021. You should contact the HSA custodian and obtain an explicit return of the excess contributions made for 2021 (not a regular distribution). If your are still covered by Medi-Cal and you've also made HSA contributions for 2022, you'll need to have those returned too. Failing to do so will expose you to recurring 6% penalties each year that the excess remains in the HSA. Taking a regular taxable distribution in future years to correct the excess can expose you to a 20% early-distribution penalty that you would not have had had you corrected the excess by a return of excess contribution.