Withdraw HSA excess contribution deadline

[zcindy9075]

I was told the 2024 excess HSA contribution removal deadline without a penalty was in October of 2025. May I confirm this information here?

[KeshaH]

That is correct. The deadline to withdraw excess 2024 contributions is the due date of the 2024 return, including extensions. If you file an extension, you can withdraw the excess by October 15, 2025.

See: Form 8889 Instructions

[zcindy9075]

What if I don't file an extension, which means my tax return would be due on April 15. Then, should the deadline be April 15 or Oct. 15? Thank you.

[SusanY1 · Accepted solution]

If you do not file an extension, then you would need to remove the excess by April 15.  If you file the extension, you preserve the right to withdraw the excess even if you file your return prior to the October 15 extension deadline.

[dmertz]

The deadline to obtain a return of excess contribution is October 15 if you request a filing extension or you file your tax return by April 15 (even if you did not request a filing extension).  If you file by April 15 and obtain the return of excess contribution after April 15 but no later than October 15, when amending your tax return you must include the notation "Filed pursuant to section 301.9100-2" 

[nelipin]

I filed my tax return by the April 15, 2025 deadline.  I now realized I had excess contributions to my HSA from last year and submitted the request to my HSA to withdraw the excess contributions. 

I am creating the amended return for 2024 in Turbotax, but in the section about withdrawing the HSA funds it only gives 3 options: 

1. withdraw full excess contributions by 4/15/25

2. withdraw partial excess contributions by 4/15/25

3. not going to make a withdrawal

I understand by filing my return timely that I have until the extension deadline in October to withdraw my funds.  Why does Turbotax not list that as the date in this area?  This would make me think I select Option 3, but on the other hand I feel Option 1 would be more accurate if only it said 10/15/25.  

Should I still select Option 3 following the wording of the Turbotax question?

[Mike9241]

{MODS} seems like a Turbotax bug. Really lack of correct verbiage.  use the 1st option. This is so Turbotax will automatically show the removal of the excess, remove the 6% penalty and form 5329. using the last option will not do this. If the HSA was done through your employer the excess will become taxable income. There is also the issue of reporting earnings on the excess because they too must be removed and included in income. if the withdrawal request properly stated it was a withdrawal of excess contributions the admin/trustee should do this automatically.

[nelipin]

Right, I'm going to wait until the HSA actually completes my request to finish amending my return, but they should do it correctly since I chose withdraw excess contribution.

The $ amount in excess will then be income on my 2024 amended return and then any interest income on the account that was generated from the excess contribution should be distributed as well and that will become other income on my 2025 return done in early 2026.

The verbiage does throw me off, but I agree that I do believe Option 1 is the correct option to choose, so it calculates it correctly.