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bpearman
New Member

How do I handle an over-contribution to both my HSA and 401K accounts on my 2018 taxes?

I accidentally over-contributed to both my 401K and HSA in 2018. 

I contacted my 401k and HSA providers and have filled out the forms to withdraw the excess contributions now in 2019. 

What do I need to put on my 2018 taxes, if anything, to resolve the over-contributions?

TurboTax was telling me to fill out information as though I had received a 1099-R; however, I don't and won't have all of this information this year.  I keep getting errors at the end when the check is running.  I was confused about the correct way to handle these overages.

Also, does the withdrawal request or the actual money withdrawal have to occur before the tax deadline?


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2 Replies

How do I handle an over-contribution to both my HSA and 401K accounts on my 2018 taxes?

Have you entered your HSA information into TurboTax enough so that TurboTax told you what your excess contributions were? If not, you may have withdrawn the wrong amount.

The way this is supposed to work for HSAs is this:

  • You enter your HSA information in TurboTax
  • TurboTax declares that you made excess HSA contributions
  • TurboTax asks if you will withdraw the excess before the due date
  • TurboTax adds the amount of excess back to Other Income (if the excess came from the code W amount on line 12 on your W-2)
  • You contact the HSA custodian and request the "withdrawal of excess contributions"
  • The HSA custodian has you fill out a form and sends you a check for the excess
  • Early next year, the HSA custodian will send you a 1099-SA with a distribution code of '2' and the amount of earnings for the excess in box 2. The earnings will be added to your other income on the 2019 return (as they should be)

If you withdrew a different amount than what TurboTax tells you is the excess amount, then you have a messy situation. Please see this link for hints on how to deal with this - https://ttlc.intuit.com/replies/7359362


For the 401(k) overcontribution, the process is somewhat similar, but you should see this TurboTax FAQ before doing anything - https://ttlc.intuit.com/replies/7327357

bpearman
New Member

How do I handle an over-contribution to both my HSA and 401K accounts on my 2018 taxes?

For the 401K I do not have enough information to avoid all of the errors I get for trying fill out a 1099-R.  I do not have the address or information for any of the other boxes.  
All I have is information for boxes 1, 2a, and 7.  Is this all the information I need to enter?

Also, does the 401k money have to be removed by April 15, 2019 to avoid the penalty or do I just need to have the withdrawal request in by April 15?  If I file for an extension, does this push my deadline for withdrawal out to October?
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