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Catch-up contribution to HSA for 2023 wrongly reported in 2024 W2

Hello, 

I contributed 3,264.06$ to my HSA account in 2023. And contributed 764.16$ in Jan 2024 as catch-up contribution to my 2023 HSA through my payroll. So I over contributed my 2023 HSA account by 178.22$.

I didn't contribute anything towards my 2024 HSA as I was not in HDHP plan in 2024. However, my 2024 W2, box 12W shows 382.08$. Do I need to get this amended?

Also, when filing the taxes, Turbotax picks this 382.08$ amount as my over contribution and generates 8889 form for 2024 HSA. How do I fix that? 

And how do I go about withdrawing 178.22$ of over-contribution? Thanks in advance for your help!

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1 Reply
dmertz
Level 15

Catch-up contribution to HSA for 2023 wrongly reported in 2024 W2

If this contribution made in 2024 was properly recorded by the HSA custodian as a contribution for 2023, in the HSA contribution section of 2024 TurboTax answer Yes when asked if your employer told you about other contributions, then enter the $382.08 in the box for contributions made in 2024 for tax year 2023.

 

Note that you needed to do something similar with your 2023 tax return where you would need to have answered Yes when asked if your employer told you about other contributions and then entered the $382.08 in the box for contributions made in 2024 for tax year 2023, otherwise the $382 would not have appeared on your Form 8889 as required.

 

You mentioned making a catch-up contribution.  If by that you mean that you were age 55 or over in 2023, your contribution limit was $4,850 and you made no excess contribution.  If you were under age 55 at the end of 2023, you made no catch-up contribution, just an excess contribution of $178.22.  Correcting the excess contribution now requires making a taxable HSA distribution, reportable on your 2025 Forms 8889 and 5329.  Avoiding the excess contribution penalty for 2024 would have required that the corrective distribution be made in 2024.  The result will a second taxation of the $178.22, plus a 20% additional tax.

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