Hello,
At the start of 2023, I was employed with Company A and had maxed out my annual HSA contributions of $3,850, this is a mix of employer + pre-tax payroll contributions.
I switched jobs in July 2023 and the new employer (Company B) contributed a fixed amount of $500 to my HSA.
I contacted the HSA trustee with Company A and completed a Distribution of Excess HSA Contribution form to withdraw $500 and the interest earned on it. They mailed me a check and I deposited it into my bank account.
I'm just wondering if I will need to contact Company A regarding this excess withdrawal so they can update Box 12 of my W-2 or will the 1099-SA form from the HSA trustee be sufficient for filing my taxes?
Any help/suggestions would be appreciated!
Thank you!
the w-2 s are correct you will indicate through reporting the 1099-SA that the excess was withdrawn
Thanks for the response!
Just to confirm, all the of the Box 12 on my W-2 forms collectively will sum up to more than the annual limit of $3,850, but my 1099-SA will show that I withdrew the excess amount along with the interest. Then I will just need to report this excess amount as normal income and pay taxes on it?
Because the excess was not returned to the employer, each employer must report with code W in box 12 of the W-2 the actual amount they deposited into the HSA.
When 2023 TurboTax indicates that you have an excess contribution of $500, you'll indicate that you will "withdraw" the $500 of excess contribution by the filing deadline. TurboTax will include the $500 on line 8f of your 2023 Schedule 1, indicating that you had the $500 excess returned.
When you enter the code-2 2023 Form 1099-SA, TurboTax will also include the interest shown in box 2 of the Form 1099-SA on line 8f of your 2023 Schedule 1.