If I have an excess HSA contribution and already contacted my trustee to withdraw the excess, do I need to wait to receive a new 1099-SA and 5498-SA, or can I continue?

[ubalach2]

I want to know if I can just continue through the turbotax program as normal once I've informed the HSA trustee to withdraw the excess or if I need to wait for the new 1099-SA and 5498-SA, and/or file an amended return once receiving a new 1099-SA and 5498-SA.

[BMcCalpin · Accepted solution]

If you contacted the HSA administrator to withdraw the excess in 2018 and you have already received the 1099-SA and the 5498-SA with the original information, then you can continue the program "as normal".

When you enter the original W-2 in the federal and make the original entries in the HSA interview, TurboTax should report an excess contribution. It will give you the opportunity to withdraw the excess before the return's due date.

If you say "yes" to withdrawing the excess, then you are done - if you withdrew the excess after January 1 2018, it doesn't matter if you did it before or after your filed the return.

In this case, you will get a 1099-SA next year, reporting the withdrawal and the earnings on the excess contributions, which will be taxable in tax year 2018 (i.e., next year's return).

If you get another 5498-SA, you can ignore it.