Excess HSA Contribution

2 replies
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We made excess contribution for year 2016 which we already withdrawn in 2017 before filing taxes. My questions 1) I don't have to pay any penaly anymore, correct? 2) Is my Plan administration supposed to generate revised 1099-sa for 2016 with excess contribution details or it will be mentioned in 2017 1099-sa? Please help

BillM223Answer

Level 15

First, if you withdrew the entire excess contribution in a timely manner, then you will not pay a penalty. However, you will pay income tax on that amount, since TurboTax adds it back to Other Income.

Second, your HSA plan administrator will issue a 1099-SA in early 2018 for this transaction, because they need to tell you how much the earnings were on the excess contributions while they were in the HSA. The 1099-SA will have a code that will tell TurboTax to add only the earnings to your income for tax year 2017 (since you will have already paid the tax on the excess itself in 2016).

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BillM223Answer

Level 15

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

FileYourSelfAuthor

Level 2

Thank you TurboTaxBillMc. One last question what should i enter box 12 of W2, actual amount mentioned in W2 or remaining amount after excess withdrawal?