Excess HSA Contribution

Forum|Forum|3 years ago
February 28, 2023
1 reply
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During 2022 my wife and I had continuous HD family health coverage until we turned 65 and switched to Medicare (1st of the month in which you turn age 65). We did not have W-2's for 2022. I made prorated HSA contributions to our respective HSA accounts. The contribution amounts matched the TurboTax generated maximum contribution limits. After completing the HSA inputs, I receive an excess HSA contribution advisory. In summary - We did not have W-2's, we did not use our HSAs, we did not inherit HSAs, but we did prorate our contributions. I have deleted both Form 8889s, and closed TurboTax only to have the same issue occur after once again inputting my data. I have contributed to our individual HSAs in past tax years and have never had this issue. Any ideas on what the issue could be?

BillM223

Level 15

Did you prorate the $1,000 "bonus"? That's a common mistake, to prorate the annual coverage by number of months, and then to just add $1,000 to the result.

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jdwyoAuthor

Level 2

I did prorate the excess and the family maximum contributions. TurboTax has a maximum contribution calculator that also provides the prorated HSA amount that each of us could contribute. The contributions I made to both of our HSA accounts matched the TurboTax maximum contribution calculations. I checked our birthday dates in the personal information to ensure that they were correct. I also confirmed that our 2021 HSA contributions did not exceed the maximum contribution amount. It appears that the software may have a glitch based upon my experience.

BillM223

Level 15

"The contributions I made to both of our HSA accounts matched the TurboTax maximum contribution calculations."

This might be the issue. If you have Family coverage, that maximum contribution screen gives you the max contribution for each spouse which regard to what the other spouse did.

As you know, the Family limit of $7,300 is shared between the two spouses (depending on your annual HSA contribution limit). So the first spouse is shown as getting the whole $7,300...then the second spouse is shown as getting the whole amount also.

So, to confirm this, tell us what were the amounts that you each contributed, and in which months did you each switched to Medicare.

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