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Fire_Wannabe
New Member

My employer assigned me to a HSA on accident, I contributed 6750. My employer then backdated healthcare plan to be an HRA. I withdrew 6750. How do I handle this?

I had a life change event last year. When the life change event occurred, my employer assigned me to a HDHP and I contributed 6750 to the HSA.  My employer mistakenly assigned me to this plan.  I wanted a HRA that was not HSA eligible.  After talking with my employer, they back dated my healthcare plan so it would be the HRA the entire year.  Once this happened, I closed my HSA and withdrew all funds - 6750.    My W2 list 6750 in the 12W box.  How do I pay taxes on this amount but not face any penalties???

My Deductibles and OOP Max were resetting mid year with the HSA so that was not the best choice.


1 Best answer

Accepted Solutions
Opus 17
Level 15

My employer assigned me to a HSA on accident, I contributed 6750. My employer then backdated healthcare plan to be an HRA. I withdrew 6750. How do I handle this?

So in Turbotax, when you enter your W-2, the contribution will be brought in automatically from the W-2 and will be ineligible.  When you run the 1099-SA interview, you will indicate that you were ineligible, but you had a return of excess contributions. That amount is added back to your taxable wages but you won't owe a penalty.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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3 Replies
Opus 17
Level 15

My employer assigned me to a HSA on accident, I contributed 6750. My employer then backdated healthcare plan to be an HRA. I withdrew 6750. How do I handle this?

When you withdrew the HSA money, did you specifically tell the bank that you were withdrawing access an allowable contributions? Or, did you just make a regular withdrawal?
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Fire_Wannabe
New Member

My employer assigned me to a HSA on accident, I contributed 6750. My employer then backdated healthcare plan to be an HRA. I withdrew 6750. How do I handle this?

The statement says refund of excess contribution.
Opus 17
Level 15

My employer assigned me to a HSA on accident, I contributed 6750. My employer then backdated healthcare plan to be an HRA. I withdrew 6750. How do I handle this?

So in Turbotax, when you enter your W-2, the contribution will be brought in automatically from the W-2 and will be ineligible.  When you run the 1099-SA interview, you will indicate that you were ineligible, but you had a return of excess contributions. That amount is added back to your taxable wages but you won't owe a penalty.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

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