Excess HSA contribution rollover to next year

[taxnoob57]

Hello,

I had an excess contribution to HSA in year 2022 by $85 due to a job change. When filing returns for 2022, I messed up and did not withdraw the excess funds. So I paid the 6% excise tax in 2022.

Now in 2023, I see that the excess contributions are carried over from last year. I contributed the max of $3,850 in 2023. The $85 is being considered as an excess contribution again.

I want to contribute less in 2024 by $85 to my HSA. Does this remove the excess contribution when I am filing 2024 taxes and ensure I won't have to pay the 6% fine from 2024 year?

[MinhT1 · Accepted solution]

Yes.

If you applied the excess contribution to your contribution in 2024, there's no longer an excess contribution and you won't have to pay the ^% excise tax in 2024.

[taxnoob57]

Awesome. Thank you for replying @MinhT .

Would I have to do anything other than contributing less in 2024 to "apply" the excess contributions from 2022 to 2024? Will this reflect on any forms like W2 or 1099-SA?

[MinhT1]

In 2024, just reduce your contribution and count the 2022 excess in your 2024 contribution.