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?
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1 Best answer
JeffreyR77
Expert Alumni
Feb 7, 2021 3:54:05 PM
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.
1 Replies
JeffreyR77
Expert Alumni
Feb 7, 2021 3:54:05 PM
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.