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arek-kosinski
Level 1

Why do I see 1567$ in excess contribution for my HSA. I left my old company in April and started new job same month

 
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Accepted Solutions
AmyC
Expert Alumni

Why do I see 1567$ in excess contribution for my HSA. I left my old company in April and started new job same month

The 2019 HSA contribution level maximum is $3,500 for individual coverage, and $7,000 for family coverage. Since you changed jobs, it would have been easy to have too much withheld.

 

Please check how much was withheld at each job. Add the 2 numbers together. If you are not over the limits above, check to see if there is a typo in your return.

 

If you’ve contributed too much to your HSA this year, you can do one of two things:

1. Remove the excess contributions and the net income attributable to the excess contribution before you file the federal income tax return. You’ll pay income taxes on the excess removed from your HSA.

2. Leave the excess contributions in your HSA and pay 6% excise tax on excess contributions.

a. Next year you should contribute less than the annual limit to you HSA to make up for the excess contribution during the previous year.

b. Otherwise, the 6% tax will continue to accrue.

 

The limits for 2020 are $3,550 for individual coverage and $7,100 for family coverage.

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1 Reply
AmyC
Expert Alumni

Why do I see 1567$ in excess contribution for my HSA. I left my old company in April and started new job same month

The 2019 HSA contribution level maximum is $3,500 for individual coverage, and $7,000 for family coverage. Since you changed jobs, it would have been easy to have too much withheld.

 

Please check how much was withheld at each job. Add the 2 numbers together. If you are not over the limits above, check to see if there is a typo in your return.

 

If you’ve contributed too much to your HSA this year, you can do one of two things:

1. Remove the excess contributions and the net income attributable to the excess contribution before you file the federal income tax return. You’ll pay income taxes on the excess removed from your HSA.

2. Leave the excess contributions in your HSA and pay 6% excise tax on excess contributions.

a. Next year you should contribute less than the annual limit to you HSA to make up for the excess contribution during the previous year.

b. Otherwise, the 6% tax will continue to accrue.

 

The limits for 2020 are $3,550 for individual coverage and $7,100 for family coverage.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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