Can I Have Excess Contributions to My HSA and Use It in Following Years?

Having excess contributions to your Health Savings Account (HSA) is a common concern among many individuals, as they want to ensure they maximize the benefits of their account without facing any penalties

It's essential to understand the rules and regulations regarding excess contributions to an HSA to make informed decisions about your healthcare savings

In general, if you contribute more than the allowed annual limit to your HSA, the excess amount is subject to penalties by the IRS

However, there are some ways you can address excess contributions and potentially use them in the following years:

• Consider withdrawing the excess contributions before the tax filing deadline
• If you do not withdraw the excess amount, it will be subject to a 6% excise tax
• Consult with a tax advisor or financial planner for guidance on how to handle excess contributions

While it's best to avoid excess contributions to your HSA, it's essential to know your options if you find yourself in this situation

Having excess contributions to your Health Savings Account (HSA) can be puzzling, but fear not! You're not alone in wondering how to handle these situations effectively.