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kmaroney12
New Member

How would I know if I over funded my HSA in 2016? I personally didn't add anything to it, only my employer did.

I'm assuming my employer wouldn't add so much that it would now make me have to pay fines but I think that's what TurboTax is telling me. How do I know what overfunding is?
1 Best answer

Accepted Solutions
Opus 17
Level 15

How would I know if I over funded my HSA in 2016? I personally didn't add anything to it, only my employer did.

The limit for a person who had single medical insurance coverage that was qualifying HDHP insurance for the whole year is $3350 for 2016.  That limit may be pro-rated if you only had qualifying HDHP insurance for part of the year.

The most common tax mistake is to double-report your contributions.  Any contributions that were made by your employer OR BY YOU via pre-tax payroll deductions are reported in your W-2 box 12 with code W, and are automatically captured by Turbotax.  Later when you run the HSA interview, you will be asked about additional contributions -- only enter additional contributions you made out of pocket, do not include payroll contributions.

Also, if you do not have a qualifying HDHP health insurance plan, all of your HSA contributions will be considered excess, so it is important to answer all the HSA questions and tell the program that you had qualifying insurance.  This question may come up in the W-2 interview "we noticed you had HSA contributions, so tell us about your insurance" and the questions are definitely included in the HSA interview on the Deductions and credits page.  Make sure you do all the questions in the HSA interview even if you did not have withdrawals or after-tax contributions, so that you will get the chance to confirm that you did have qualifying insurance coverage.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

4 Replies
ghost
Level 8

How would I know if I over funded my HSA in 2016? I personally didn't add anything to it, only my employer did.

Did you complete HSA interview?
kmaroney12
New Member

How would I know if I over funded my HSA in 2016? I personally didn't add anything to it, only my employer did.

No. My employer has big PowerPoint presentations each year about the details of health coverage, etc and it's info overload plus not personalized for everyone. I vaguely remember them saying something about $750 being a limit but I don't have that much in my HSA. I'm not sure why turbotax is suggesting to me that I'll need to pay a fine for putting too much in? We had this plan for 12 months and I know when I google it, it says the max is like $3000???
ghost
Level 8

How would I know if I over funded my HSA in 2016? I personally didn't add anything to it, only my employer did.

PROBLEM:
Here's why I think you are saying.
Your employer contributed to your HSA for you.
They have reported some small amount on your W2 in box 12 (look for an amount with code letter W).
This is automatically captured by the TurboTax program when you are done entering your W2.
You were shown an easily missed message to complete the HSA interview to claim the HSA deduction.
You did not complete the HSA interview.
You are now being told that your HSA is over funded.

SOLUTION:
Find the section in the Turbotax program for Medical Deductions and Credits.
Look there for a part about HSA/MSA Contributions.
Work through this interview answering all questions.
If you don't know an answer, stop and ask questions before entering a guess.
Opus 17
Level 15

How would I know if I over funded my HSA in 2016? I personally didn't add anything to it, only my employer did.

The limit for a person who had single medical insurance coverage that was qualifying HDHP insurance for the whole year is $3350 for 2016.  That limit may be pro-rated if you only had qualifying HDHP insurance for part of the year.

The most common tax mistake is to double-report your contributions.  Any contributions that were made by your employer OR BY YOU via pre-tax payroll deductions are reported in your W-2 box 12 with code W, and are automatically captured by Turbotax.  Later when you run the HSA interview, you will be asked about additional contributions -- only enter additional contributions you made out of pocket, do not include payroll contributions.

Also, if you do not have a qualifying HDHP health insurance plan, all of your HSA contributions will be considered excess, so it is important to answer all the HSA questions and tell the program that you had qualifying insurance.  This question may come up in the W-2 interview "we noticed you had HSA contributions, so tell us about your insurance" and the questions are definitely included in the HSA interview on the Deductions and credits page.  Make sure you do all the questions in the HSA interview even if you did not have withdrawals or after-tax contributions, so that you will get the chance to confirm that you did have qualifying insurance coverage.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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