Confused with how to enter HSA Excess contribution withdrawal
While doing my taxes in FTU, it was brought to my attention that I made excess contributions to my HSA.
In total, $642 was in excess. When running through to prompts it asks
"Did April take an HSA distribution in 2024?" Technically, no but it is prior to the filing date that the excess was caught and rectified. The check has been cut in 2025 so the distribution is in 2025. So do I click NO since I do not have a 1099-SA form? I clicked no for now.
Continuing on through the prompts, "Will April withdraw part or all of April's 2024 excess contributions by April 15, 2025 (or by October 15, 2025 if an extension will be filed)?" The answer is yes, they've already cut the check but it includes an extra $38 from money made so total of $680. But anyway, answer is yes and I intend to withdraw all $642 of the excess contributions. So do I put $642 or $680?
Then the next prompt/question is, "Enter the value of all of April's health savings accounts as of December 31, 2024, including 2024 contributions made during 2025:" Is this what is on my w2 of $2371 or is this what it would have been if there was not excess contributions? Which would be $1729
As you can tell, I am thoroughly confused. I'm glad it was caught in time to fix but for some reason, this all seems more confusing than it should be.
Thank you for your help.
Comments
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Hi Bowenam,
Reporting an excess HSA contribution withdrawal is simple, but I agree, can be confusing. In the HSA section, continue to the "Will you withdraw NAME's excess HSA contributions?" page. Then answer YES to the question and in the box enter the amount of the excess you will withdraw ($642. Do not included the earnings). Enter the balance as of 12/31/2024, not the amount after any withdrawal. You may need to look at the HSA account to get that amount. and press Save.
