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  • Services
    • Tax Preparation
    • Home Loans
    • Personal Finance Coaching
  • About Us
    • Meet Chad
    • Meet Emilie
    • Chad's Story
  • Client Resources
    • Tax Resources
    • Home Loan Resources
    • Financial Coaching Resources
  • E-News
  • Client Reviews
  • Contact Us
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I made excess contributions to my HSA...how do I correct the mistake?

HSA’s have maximum contributions that carry penalties if you exceed the allowable amounts.
 
The good news is you can correct the mistake to avoid negative financial ramifications. This is done by removing the excess amount (including earnings from the excess contributions) before your tax return is filed. This allows you to avoid including the excess contribution in your taxable income and eliminates penalties.

To remove excess contributions, you can either correct the error with your employer, or with the HSA administrator.

If correcting through the HSA administrator, you’ll want to inform them you’d like to complete a distribution for an Excess Contribution Removal. You’ll then receive a 1099-SA form reflecting the correction.

If you made the excess contribution through your employer via a pre-tax payroll deduction, you’ll need to work directly with your employer to fix the issue. Your employer should then make the changes and issue you a corrected W2.

Once the corrections are made, provide your tax preparer with the updated tax forms.
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​​Copyright © 2022 Chad Peshke LLC, All rights reserved. NMLS #2244878. Material contained in this website is for informational purposes only and is not meant to be construed as direct financial advice for your specific situation. It's recommended that you consult with your own advisors for personalized financial guidance. Since we're not licensed attorneys, we cannot provide legal advice. As such, any info contained in this website should not be construed as direct legal advice. While Chad Peshke LCC is registered/approved with CA & ID, the trade name "CP" is not approved to be used in ID. This has no impact on our ability to legally do business in CA & ID as Chad Peshke LLC.