How to Report Excess HSA Contribution Withdrawal less Custodial Fees?
I contributed $2,000 to my HSA in 2024, and I just discovered I was covered under Medi-Cal the entire year. As such, I shouldn't have contributed to an HSA, and I am working with my HSA Administrator on a withdrawal of my account balance. I have not filed for 2024 yet.
However, my account balance at 12/31/24 (and today) was less than $2,000 due to administrative fees (I didn't use any of the $2,000.)
On the screen, "Will you withdraw your excess HSA contributions?", there are two questions, and I am unsure how to answer one of them:
"Enter the value of all of your health savings accounts as of December 31, 2024, including 2024 contributions made during 2025:" — I assume I will put the balance that is less than $2,000 at 12/31/24.
"Enter the amount of 2024 excess contributions of $2,000 that will be withdrawn and meet the conditions above:" — For this question, should I report the account balance being distributed, which is less than $2,000, or should I report a withdrawal of $2,000?
Thanks!