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ds4moore
Level 1

Excess contributions

I made excess contributions to my HSA in 2017 but didn't pull them out until 2020. Received a 1099-SA with a distribution code of 2 (normal distribution).  Since it was for 2017 are there are penalties, etc. that need to be paid?

1 Best answer

Accepted Solutions
JeffreyR77
Expert Alumni

Excess contributions

You are not subject to an excise tax in 2020 as you removed the excess contributions in 2020. 

 

You should have been paying 6% excise tax on the excess contribution amount in 2017, 2018 and 2019 for not removing the excess contributions.

 

 

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1 Reply
JeffreyR77
Expert Alumni

Excess contributions

You are not subject to an excise tax in 2020 as you removed the excess contributions in 2020. 

 

You should have been paying 6% excise tax on the excess contribution amount in 2017, 2018 and 2019 for not removing the excess contributions.

 

 

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