How do I have excess HSA contribution?

[cthomp81]

Turbotax is saying I have an excess HSA contribution of $425, but how? 

Here's my 2022 situation.

To Begin the year, I had an HSA that had been automatically set up through my medical insurance through my employer.

• I never made any employee contributions (no money out of my pocket)
• in 2022 this employer contributed $425 to my HSA ( same amount as excess contribution. is this a coincidence or does it mean something?
• I leave this job partway through 2022 but continue to use this HSA to pay medical expenses, until late 2022 or early 2023, I ran out of funds in this account.

Part way through 2022 I changed companies and start on a new health care plan with a new HSA

• Same as my previous HSA I make no elections to contribute to the HSA myself. no employee contributions.
• my new employer did make a contribution into my HSA. Also around $400. not sure if this contribution was in 2022 or early 2023
• I have spent none of that employer contribution, as the few times I went to the doctor in 2022, I used up the funds from my HSA at my previous job.

To summarize.... Neither plan was family. Each one was individual, just me being covered. I had somewhere between $800 and $900 total contributed (split between 2 HSAs) (possible that half of that, contribution from new employer into 2nd HSA, was actually contributed to begin 2023, so maybe that isn't a factor? But all contributions were employer contributions, I made no employee or paycheck contributions at all in 2022..

Isn't the limit around $3650? Why am I being told I over contributed $425? What do I not understand?

If it makes any difference, my current plan is not an HDHP plan, despite somewhere on turbotax I was told if I have a HSA, I have an HDHP plan. I don't. nowhere on my plan info does it say I have an HDHP plan. and my individual deductible is only $1200. I don't remember details about my health plan at my former employer.

[Mike9241]

if you are not covered by a HDHP any employer contribution is an excess and thus taxable income to you. also, any contributions you make either directly or through payroll deductions (the company should not allow this if you are not covered by a HDHP). an employer reports all contributions to a HSA in box 12W on the w-2. these include its contributions and employee payroll deductions which in your case are zero,  so evidently the second was in 2023. just check your w-2s. the second should have zero in box 12W or not have it at all.  to be a HDHP for 2022 or 2023 for self-only coverage the deductible must be at least $1400 or higher. you should have gotten 1099-SA for the 2022 withdrawals from the HSA. and form 5498_SA for the contributions. the 1099-SA info needs to be entered in turbotax.

***

you need to find out if you had a HDHP with the first employer. if you did that would make the employer contribution not taxable.  in 2023 without a HDHP coverage, the employer contribution would be taxable to you 

[Mike9241]

if you are not covered by a HDHP any employer contribution is an excess and thus taxable income to you. also, any contributions you make either directly or through payroll deductions (the company should not allow this if you are not covered by a HDHP). an employer reports all contributions to a HSA in box 12W on the w-2. these include its contributions and employee payroll deductions which in your case are zero,  so evidently the second was in 2023. just check your w-2s. the second should have zero in box 12W or not have it at all.  to be a HDHP for 2022 or 2023 for self-only coverage the deductible must be at least $1400 or higher. you should have gotten a  1099-SA for the 2022 withdrawals from the HSA. and form 5498 which you need to enter. what code is in box 3?

******

you need to find out if you had a HDHP with the first employer. if you did that would make the employer contribution not taxable.  in 2023 without a HDHP coverage, the employer contribution would be taxable to you 

[cthomp81]

So if all 2022 contributions were made by 1st employer, but I am pretty sure I spent most of, if not all, funds in that account (on eligible health care expenses). Can I withdraw the excess contribution from my new HSA which was only funded in 2023?

[cthomp81]

Just found out my account at new job is not HSA, it is HRA. And new employer contributed $400 in 2022.

What does this change about my situation? 

[DaveF1006]

According to IRS Publication 969, there is no limit to the amount of money your employer can contribute to an HRA. Unlike an HSA, there is no reporting requirement  for your HRA if the contribution was made by the employer. you do not need to withdraw the contribution.

@cthomp81