Excess contributions

[ds4moore]

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?

[JeffreyR77 · Accepted solution]

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.