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How to handle HSA over contributed in the prior years.

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Level 2

If a client over contributed to their HSA for a prior year and it was discovered recently (i.e. while trying to file the 2018 tax returns), can they have the trustee withdraw the excess now and adjust it on form 8889 for 2018?  Or do they have to wait for the 2019 tax filing to rectify it?

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Level 15

Withdraw the excess NOW! A 5329 that should be filed for the "prior year" and every subsequent year to report the penalty for excess contribution. The 8889 should only reflect the deductible contribution.


ex-AllStar

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1 Reply 1
Highlighted
Level 15

Withdraw the excess NOW! A 5329 that should be filed for the "prior year" and every subsequent year to report the penalty for excess contribution. The 8889 should only reflect the deductible contribution.


ex-AllStar

View solution in original post

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