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Worked 3 months in 2019, contributed $3500 to HSA. Is that considered excessive contribution?

I was shown by the system that I have an excessive contribution of $3500 when I'm filling for 2019 taxes. I don't understand why since that's the exact limit amount. Is it because I only worked for 3 months last year so my limit is 1/4 of the $3500? But then the excessive amount doesn't make sense... I should only be 3/4 over the limit.... I'm so confused. Please shed light. Thanks!

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1 Reply
AnnetteB6
Expert Alumni

Worked 3 months in 2019, contributed $3500 to HSA. Is that considered excessive contribution?

I see that you have also asked a similar question, but with one more important piece of information included in the other question.  You stated that your return indicates that you can be claimed as a dependent.  

 

If you can be claimed as a dependent, then you are not eligible to make any contributions to a Health Savings Account.  That is why your entire contribution is being shown as an excess contribution.  You must take the steps outlined in TurboTax to have that excess contribution removed from your Health Savings Account in order to avoid the 6% excise tax.  

 

When you contact your HSA custodian to withdraw the excess contribution, be sure to specify to them that you are doing a 'withdrawal of an excess contribution'.  This will insure that it will be handled properly when it is reported.  

 

 

@lilytax0225

 

 

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