topic HSA Excess contributions - Current Tax year in Deductions & credits

HSA Excess contributions - Current Tax year

cnb8869 — Tue, 10 Mar 2026 07:24:48 GMT

Hello -- Thanks in advance here....

So this was my first year with a HDHP, and I accidently over-contributed to the HSA account. I contributed $5540, and my health care provider (GEHA) will be contributing $1800 .... putting me over the limit. Luckily I caught this early enough (Today is Dec 10). I am planning on filing a contribution reversal of $60 ( so add little padding) with the HSA, and they will send me a check for the excess ($60) . But I'm guessing my employers W2 will not reflect this, and will still show the excess contribution. My employer is the Federal Gov't, and so getting a corrected W2 is not easy. Also - since the excess contribution check is coming to me, it needs to be added to income, and appropriate taxes deducted. How will this all work? Would it be easier to just take the penalty?

Re: HSA Excess contributions - Current Tax year

Mike9241 — Sat, 10 Dec 2022 17:33:49 GMT

don't do the withdrawal on your own. contact the trustrtee and tell them you have made an excess contribution of $60 which you want to be removed. this is important so that the trustee sends properly coded tax forms to the iRS. if not you could face a 6% excess contribution penalty and a 20% penalty for a non-qualified withdrawal

your other option is to leave the money in pay the 6% penalty and then undercontribute by $60 in 2023

Re: HSA Excess contributions - Current Tax year

cnb8869 — Tue, 13 Dec 2022 13:44:19 GMT

Great -- Thanks ! That's what I was worried about. I'll be sure to get my employer to be the one signing the reversal form.