contributed to excess HSA

[douglasjia]

Hi, 

Both my wife and I are using the company's high deductible health insurance plan (we work for different companies). Each of us contributed to the upper limit of the allowed amount (each of us contributed 2650 by ourself and our companies also contributed to 1000 for each of us; so for year 2022, we should have contributed to 7300$ in total).

But in the middle of last year, my son was born and I added him to my health insurance plan. My company then contributed another 1000$ to my HSA due to I am adding a family member to my plan. So, my company contributed 2000$ in total (for me and my son); my wife's company contributed 1000$ for her. This makes the total amount of our contribution to 8300$.

I am wondering, is this allowed? We haven't thought of the additional 1000$ from my company when we planning for the contribution. If this is not allowed, how should I make it correct for my federal return and state return?

Thank you! 

[BillM223]

It would be allowed only if one of you were 50+ AND one of you had Family coverage on your HDHP, otherwise, your annual HSA contribution limit is $7,300 under a Family HDHP plan (which covers both of you, no matter how many children you have). If one of you were 50+, then you could contribute an extra $1,000 to that person's HSA (up to $8,300).

When you do your tax return in TurboTax and make all the entries, TurboTax will almost certainly report that you have excess HSA contributions. It will ask you if you want to withdraw the excess (you should if you can). Otherwise, you carry over the excess to 2023, and get dinged 6%, and then you still need to reduce your contributions in 2023, to allow the carryover amount to be used in 2023.

[Mike9241]

if the company's plan provides for this it's legal.  has nothing to do with your age. the plan could also have a provision for the employer to contribute more if you're over 55.