An error by my employer resulted in a $36 excess HSA contribution in 2022. The excess still existed in 2023 and I paid the extra tax on it. My plan to fix it was to have the HSA provider distribute the excess to me...however, my employer had changed HSA providers, which resulted in a dead-end. The current provider won't correct since it happened with the prior provider, and the prior provider has no funds of mine to issue a check.
In 2024, I purposely under-funded my HSA intending to leave room to apply the $36 excess (from 2022) to my 2024 contribution (my limit is $5150, I contributed $5052.49 so I have $97.51"room").
Am I correct that this method is acceptable?
What are the steps in TT (Windows desktop) to apply the 2022 excess to my 2024 contribution?
Thanks in advance!
TurboTax will automatically carryover the excess contribution amount, and it will place it on Line 2 of form 8889. It may also appear on line 13, Schedule 1 (1040).
TurboTax will apply the carryover as a personal contribution along with any other personal contributions you have.
In the HSA section, you may see the question, "Did you overfund your HSA in 2024?" If you see this question, answer "Yes". What it is really asking is, "Did you have a carryover of excess contributions? (the answer of course is yes)". If asked for the amount, enter the amount that was carried over.