tax guys - messed up my HSA please advise (1 Viewer)

[Dentist]

My wife handles all the medical side of our personal finance.. and for the first time she goofed.

the HSA contribution family limit is $6450 and she put in about $6650

How do I fix this, and how will i handle it in turbotax?

 

[fourd]

Don't know how to handle it in TurboTax but contact your custodian. They should have a withdrawal form to remove excess contributions.

 

[mquinnjr]

AFAIK, I don't know how turbotax will handle it, but the rule is the excess amount is subject to a 6% excise tax, or $200 *.06 = $14 penalty. If you pull it out of the HSA before you file your taxes, you can avoid the penalty.

ETA: If you have the excess tied up in mutual funds with your HSA administrator, you have to calculate and exclude those gains along with the $200 as well, or they are also subject to the penalty.

 

[culdeus]

AFAIK, I don't know how turbotax will handle it, but the rule is the excess amount is subject to a 6% excise tax, or $200 *.06 = $14 penalty. If you pull it out of the HSA before you file your taxes, you can avoid the penalty.

ETA: If you have the excess tied up in mutual funds with your HSA administrator, you have to calculate and exclude those gains along with the $200 as well, or they are also subject to the penalty.

good info here

 

[DSP]

Get yourself religion status and just stop paying taxes. Its for the birds