Until 2024 - My wife got medical insurance and HSA account for the family and we have filed joint taxes until 2023.
In 2023 - we have $7300 in HSA account
IN 2024 - we have $8300 in HSA account
For 2024,we are planning to file a tax separately and while filing for my wife, under HSA contributions, it took $8300 from W2. On the next screen, we got a message like this -
It looks like you have an excess contributions of $8300. This amount is being taxed an extra 6%. But you can withdrawn the amount until April 15th, 2025 with 3 options -
1. Fulll withdraw
2. some withdraw
3. I wont withdraw
My question is - we never exceed the HSA max amount, why this message is displayed?
Appreciate your help.