I was covered under a HDHP in 2024, but switched to the EPO for 2025. A contribution I made on the last day of the year posted for 2025. HSA won't change it.

[ranman6418]

What will happen when I file my taxes for 2025 or what should I do at this point. I'm retired so my former employer isn't involved in the deductions etc. The contribution was made on the last day of the year, but they posted it for 2025.

[Opus 17 · Accepted solution]

For the tax year 2024, you can make another contribution (up to the annual maximum) by designating it as a 2024 contribution.    You can make contributions designated for 2024 up through April 15, 2025, but you have to make the designation when you make the contribution.  Check the bank's web site for the procedure.  I suspect that because you did not make the designation, the contribution defaulted to the posting date.  They should still allow you to make a designated 2024 contribution, however.  On your 2024 tax return, report any contributions made in 2024 or designated for 2024 and ignore the contribution that posted in 2025.

Then, regarding the contribution that posted in 2025, you need to remove it.  There is a special procedure for "removal of excess contribution", this is not a regular withdrawal.  Again, check the bank web site or call customer support, there may be a form you need to sign and return.  The bank returns the contribution and they must also return any earnings (interest) attributable to the contribution.  Those earnings are taxable income that are reported as miscellaneous other income for the year the associated contribution was made (in this case, any earnings would be taxable on your 2025 return).  You have until April 15, 2026 to request the return of excess 2025 contributions, but there isn't much point in waiting that long.