Greetings...I spent some time researching other posts on Excess HSA contributions and how to remove them...but they did not really apply to my situation.
Here goes...I Stopped contributing to my HSA in 2023 as a safety precaution as I thought I might retire in 2023. I did not retire. Then I applied for Social Security in May 2024 (as I thought I'd retire in July 2024)...was approved...and they signed me up for Medicare Part A. I did not retire and have been working Part time at my job ever since.
During 2023 & 2024...I participated in a "Wellness" program that you earned points for health activities. Like a dumb-arse...I cashed those points into contributions to my HSA in 2023. So when I read that the gov't looks back 6 months from when you first signed up for Medicare (May 2024 for Part A)...they look to see if any contributions were made to your HSA in that period. Well...I did make contributions in the form of those "Wellness" credits. approximately $50 for the 4th Qtr of 2023.
And I did the Wellness credit thing 2024 as well. So I talked to my HSA administrator today. They said I can back out the 2024 contributions with a form I can fill out and submit. However, I think the gov't will look back in my HSA and see contributions in the 4th qtr of 2023 (6 months before Part A started for me) and zing me for the 6% excise tax...which I dont mind...I just don't know the mechanics of how to do it.
My question is...How can I remove the 2023 Excess contributions now w/o refiling 2023 taxes or anything drastic like that? I dont mind paying a 6% excise tax on the Q4 2023 $50 contribution...or even on the entire $805 2023 excess contribution...I just dont know to do it on my 2024 taxes.
Can I take out the 2023 excess amount by including it in the 2024 Excess amount? I use Turbotax...is there something I can do there?
Any suggestions are appreciated.
Here goes...I Stopped contributing to my HSA in 2023 as a safety precaution as I thought I might retire in 2023. I did not retire. Then I applied for Social Security in May 2024 (as I thought I'd retire in July 2024)...was approved...and they signed me up for Medicare Part A. I did not retire and have been working Part time at my job ever since.
During 2023 & 2024...I participated in a "Wellness" program that you earned points for health activities. Like a dumb-arse...I cashed those points into contributions to my HSA in 2023. So when I read that the gov't looks back 6 months from when you first signed up for Medicare (May 2024 for Part A)...they look to see if any contributions were made to your HSA in that period. Well...I did make contributions in the form of those "Wellness" credits. approximately $50 for the 4th Qtr of 2023.
And I did the Wellness credit thing 2024 as well. So I talked to my HSA administrator today. They said I can back out the 2024 contributions with a form I can fill out and submit. However, I think the gov't will look back in my HSA and see contributions in the 4th qtr of 2023 (6 months before Part A started for me) and zing me for the 6% excise tax...which I dont mind...I just don't know the mechanics of how to do it.
My question is...How can I remove the 2023 Excess contributions now w/o refiling 2023 taxes or anything drastic like that? I dont mind paying a 6% excise tax on the Q4 2023 $50 contribution...or even on the entire $805 2023 excess contribution...I just dont know to do it on my 2024 taxes.
Can I take out the 2023 excess amount by including it in the 2024 Excess amount? I use Turbotax...is there something I can do there?
Any suggestions are appreciated.
Statistics: Posted by pp05629 — Tue Jan 14, 2025 3:53 pm — Replies 1 — Views 28