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New Member
posted Jan 23, 2024 9:32:48 PM

HSA Contributions vs Distributions

I only contributed $2,000.22 to my HSA with my employer contributing $300. I had $3,752.20 in distributions. While filling out my taxes on your site it told me I over paid by $450 into my HSA and that I needed to withdraw that money or be taxed an extra 6%. As a single person I am allowed $3,850 in contributions for 2023, so why did it tell me that I over contributed by $450? I didn't catch this until after I started the withdraw process with my HSA plan, which may now end up costing me even more.

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1 Best answer
Level 15
Jan 24, 2024 5:05:10 AM

It appears that you made the $2,000.22 contribution through your employer and is included in the amount reported with code W in box 12 of your W-2.  As such, the entire $2,300.22 code-W amount is considered to be employer contributions.  Do not enter the $2,000.22 again as a personal contribution.  Go back and remove that entry.  

1 Replies
Level 15
Jan 24, 2024 5:05:10 AM

It appears that you made the $2,000.22 contribution through your employer and is included in the amount reported with code W in box 12 of your W-2.  As such, the entire $2,300.22 code-W amount is considered to be employer contributions.  Do not enter the $2,000.22 again as a personal contribution.  Go back and remove that entry.