HSA excess contribution and subsequent refund from provider

[Mandeb123]

In 2021 I decided to maximize my contribution to my HSA. The limit for an individual was set at $3600. My employer contributed $250, and I earned $800 in wellness dollars, so my personal contribution limit was set at $2550 (funded via payroll deductions). Not fully understanding the mechanics/timing of the HSA plan, and needing to have access to the funds for medical expenses, near the end of 2021 I elected to manually contribute the remainder of my election via personal payment/deposit. I was given incorrect information about what was required to stop the payroll deductions so those continued on and  I ended up with an excess HSA contribution.  I requested the excess to be returned to me before the end of 2021. I received two 1099-SA's (one for $3575.01, one for $196.15). My W2 box 12c - W shows $3403.85 (which I'm assuming would have been $3600 but for the excess contribution of $196.15). I also received a 5498-SA that shows $3796.15. I believe this includes the amounts of the two 1099-SA's plus a $25 refund that a provider issued. If I properly entered the W2 info and 1099-SA's are there any other adjustments I need to make.

[MarilynG1 · Accepted solution]

No, just enter your W-2 and 1099-SA's as shown.  Your 1099-SA's should have Code 1 and Code 2, respectively.

The excess contribution and any earnings on the excess contribution will appear as 'Other Income'.

Click this link for more info on Excess HSA Contribution.

[Mandeb123]

Perfect. Thanks for the feedback Marilyn.