Why does it say I over-contributed to my HSA?

[shellmcphie]

I contributed $6,900 to my HSA under a family plan (me and my daughter) and my husband contributed $3,450 to his HSA under a self only plan. Why is it saying I over-contributed?

[Opus 17 · Accepted solution]

Because you did.  Your overall family limit is $6900, on top of your personal limits of $6900 and $3450.

One of you needs to withdraw $3450 plus the earnings as an "excess contribution."  This is a special procedure not a regular withdrawal.  The money will be added to your taxable income (you lose the tax deduction).

If you don't withdraw the excess, you pay regular income tax anyway, plus an extra 6% penalty, and you pay the same penalty in every future year as long as the excess remains in the account.  (If you leave the money in the account, and only contribute $3550 in 2019, you can consider the other $3450 excess from this year, as part of next year's limit and that will eliminate the penalty.)

For 2019, your overall family limit is $7000, so one of you needs to reduce your contributions before you get in too deep.