I don’t have an HSA anymore but TT is asking me about contributions.

[Dirtroadjedi]

I switched to a conventional insurance plan through my company for last year. Box 12c on my W2 says $75. I’m wondering if one payment from my employer to my HSA went through after the new year before it switched.

TurboTax is asking me to look at my 5329-T for a year end HSA value. The only form I received related to my HSA was a 1099-SA. What do I do here? I’ve never had an issue with TurboTax for several years of doing it.

[BillM223]

Unless you close it, you still have the HSA - you just can't contribute to it any more.

Can you not look at your online account for your HSA to see when your HSA received the $75?

I take it, your new insurance started January 1, 2024? If not, please tell me the first day you had this non-HDHP coverage.

If the employer who made the $75 contribution to the HSA was the same employer who arranged for the change of insurance, they could have withdrawn the $75 because they should have known that you were no longer eligible. Ask them if they will do it. However, it is likely that the HSA custodian may balk at it because they usually don't want to do prior year changes (however, it can't hurt to ask).

If by chance they can fix it, they owe you a corrected W-2 (one without the W code in box 12).

I am sure that TurboTax asked you to look at for 5498-SA (not 5329-T) for the value of your HSA at the end of the year. If you found someplace that referred to 5329-T for this context, please let me know and I'll submit it to be fixed.

The value of the HSA at the end of the year will be found in box 5 on the 5498-SA.

You should have received a 5498-SA every year that you had an active HSA. If you didn't receive it, contact your HSA custodian and demand it (yes, they owe it to you).

If your employer can't fix the contribution, then if the $75 is in excess this year (2024), you should withdraw it as an "excess contribution" if you can. When TurboTax tells you that you have an excess, it gives you the chance to withdraw it. Do so if you have the cash in the HSA.

If you don't have the cash in the HSA to withdraw the $75, then come back because I will have to explain what happens next.

[Dirtroadjedi]

January 3rd 2024 I had an HSA deposit and then never again after.

Ive had the same employer for 20 years and they won’t change anything years past. We had to change insurance plans by a certain time in the fall for it to be able in affect on the new year. I assume they made the deposit to the HSA because it was mid week? I’m unsure.

It was 5329-T I took a screenshot with the app open to confirm. I don’t believe I’ve ever received that form. Both my mortgage and 1099-SA HSA tax documents came the same day they’re from the same bank.

I do receive statements for my HSA from that bank and can probably locate what the last balance was at the end of December 2024.

I have over $75 in the HSA account and had had well over that for the entire year. I’ve used it to pay for copays and bills my insurance didn’t cover all year.

[BillM223]

So your new insurance took effect on January 1st of 2024? If it started on any date after that, you were considered covered by your previous insurance (the HDHP) for the month of January. Really, your status on the first day of the month determines your status for the month.

"It was 5329-T I took a screenshot with the app open to confirm. " I would love to see that screenshot. Can you post it here (with any private data censored out)?

Use a regular web browser (not your phone, if you're using that) and log into the website of the HSA custodian (which is your bank, it seems), and see if they make available the 5498-SA at the end of each year. Mine does.

Like I said, if you have $75 in cash in your HSA, just withdraw it - your life will be easier that way.

To withdraw the $75, contact your HSA custodian and tell them that you want to "withdraw excess contributions" for tax year 2024, so they don't misunderstand. In fact, they may have a form on their website to do it automatically (again, mine does).

You need to withdraw the money before April 15th.

[Dirtroadjedi]

So I don’t think they will take the money out this far down the line. I had well over a thousand dollars in that HSA when they put that 75 in and I’m less than $600 in that account now. So technically you could say that $75 is long gone, no?

Also here’s that screenshot. Apologies for the time delay I’ve had that flu going around.

[BillM223]

"So technically you could say that $75 is long gone, no?"

No, it does not work that way. To withdraw an excess contribution, you must contact the HSA custodian and ask to "withdraw an excess contribution". This something you must do by April 15, 2025 (i.e., the normal tax return due date).

The screenshot you shared is part of the 5329. However, it is not telling you the balance in your HSA at the end of the tax year, instead it is asking you what the balance is. It's asking because the excise tax (often called a "penalty") on the amount of HSA excess contributions carried over to the next year is somewhat dependent on the amount in your HSA at the end of the year.

I have to believe that the HSA custodian (the bank handling your HSA) did send you a 5498-SA; however, perhaps thy sent it electronically, not through the US mail. Also, it is very likely that they have a copy of this form on their website. Have you looked?

You never responded to my question about when (i.e., what date) your non-HDHP insurance started or went into effect.

If indeed your non-HDHP insurance began on January 1, 2024 or before, then the $75 contribution from your employer was in excess, and you need to contact your HSA custodian well before April 15th to ask to "withdraw excess HSA contributions". This also presumes that the HSA custodian will calculate the earnings on the excess while it was in the HSA, because this has to be returned to you as well. 

The earnings are not reported on your 2024 tax return, but on your 2025 return, which you will do in early 2026.