I maxed out my $4,300 HSA contribution in early 2025. I got married in early June & my wife has an FSA that I became automatically covered by. So my 2025 contribution limit was actually only $2,150 and thus I have an excess contribution of $2,150 + earnings on that to be removed.
I contacted my HSA custodian Optum Financial. That had me fill out an excess contribution removal form. They explicitly told me to leave the box for earnings on the excess contributions blank. Fast forward and they only returned the $2,150 and told me I was told incorrect information & that they do not calculate the excess earnings. They are now telling me I cannot remove the excess earnings because they cannot send them back alone, they can only do so if they are sent back along with an excess contribution.
So what do I do now? Has anyone had a similar situation and was able to get the earnings removed on their own?
I haven’t done the formula yet but the earnings is probably $300-400. If I can’t get that removed, how do I report this as income, and specifically as excess earnings that have not been removed, which will incur a 6% excise tax? The 1099-SA that I am going to receive is only going to show the $2,150 in excess contributions that was removed with $0 in earnings removed.
The issue is further compounded by the fact I continued contributing in 2026 even though my spouse still has an FSA (we are still on separate health plans; was unaware her FSA automatically covered me & made me ineligible for HSA until a few weeks ago). The $900 of YTD contributions in 2026 will be returned to me via payroll. There is still going to be earnings on that excess contribution in 2026. How can I get my custodian to send back the excess earnings by itself since the contributions are coming back via payroll? Seems crazy an HSA custodian can just refuse to do so.
posted
last updated
March 04, 2026
9:22 AM
