HSA

[pyrrhic14]

I setup a personal HSA through a federal credit union in March of 2024 with a balance of $1103..08 but was not eligible for a HSA due to not enrolling in a high deductible health plan. I have not contributed nor had any distributions in 2024. I did not receive a 1099-SA. How do I fix this problem?

[MaryK4]

You should withdraw the money from the account before the due date for the tax return.  You may have to report the interest earned next year, but you will not have to pay the 6% penalty,

[pyrrhic14]

Thank you.

[EliasHampton]

Thank you so much for the suggestion.

Spoiler

You’ll need to withdraw the full $1,103.08 as a mistaken HSA contribution. Contact your credit union and request a "mistaken contribution correction." Since you haven’t contributed further or taken distributions, this should be straightforward. You won’t receive a 1099-SA, but report the withdrawal properly to avoid tax penalties. Consult a tax professional for guidance. Writing a research paper takes a lot of time, and I was really struggling. I tried Academized’s research paper writing service, and I was impressed! The writer from this https://academized.com/research-paper-writing-service site followed my topic perfectly, included credible sources, and formatted everything correctly. I submitted it with confidence, and my professor gave great feedback. If you need a professional research paper, this service is definitely worth it.