topic Incorrect excess HSA contribution in 2019 in Deductions & credits

Incorrect excess HSA contribution in 2019

KBoell1869 — Mon, 29 Jun 2020 23:15:24 GMT

In 2019, I contributed $1,725 toward my 2018 HSA contribution. This was reflected in my 5498-SA for 2018 and in my 2018 tax return. I also contributed the maximum of $7,000 to my HSA for 2019. My 2019 5498-SA shows in box 2, total contributions in 2019 of $8,725 (again, $1,725 was attributed to my 2018 HSA contributions). For my 2019 tax return, TurboTax is showing an excess contribution of $1,725. Do I simply state that I contributed $7,000 in the HSA interview, and not $8,725? These were all personal contributions as well so nothing is represented on my W2.

Re: Incorrect excess HSA contribution in 2019

Anonymous — Tue, 30 Jun 2020 02:27:35 GMT

did you inform the trustee that the $1725 was a 2018 contribution and was it made on or before 4/15/2019?

contact the trustee now to see if they'll correct the form. if not you may have problems with the IRS because they have a copy of the form showing $8725. you'll probably get a notice from the IRS. you can write back to see if they accept your explanation. if received by the trustee after 4/15/2019 it's a 2019 contribution so you'll owe a penalty unless withdrawn with income by 7/15/2020. you can opt to pay the penalty and treat it as a 2020 contribution so you would need to reduce the maximum amount you can contribute for 2020 by that excess.

Re: Incorrect excess HSA contribution in 2019

KBoell1869 — Tue, 30 Jun 2020 22:39:33 GMT

Yes they are aware that the $1725 was a 2018 contribution and this is reflected on my 2018 5498-SA form in box 3 as a contribution made in 2019 for 2018. I have spoken with them as well and they are required to report the total contributions made in 2019 irrespective to which tax year they are applied.

Re: Incorrect excess HSA contribution in 2019

Critter — Tue, 30 Jun 2020 22:56:47 GMT

Stop entering the 2018 contribution on a 2019 tax return and your problems will go away.