How to Figure Out Your 2018 Distribution of Excess Contributions to HSA

Figuring out your 2018 distribution of excess contributions to your Health Savings Account (HSA) is essential for avoiding tax penalties and ensuring compliance. If you've contributed more than the allowable limit to your HSA in 2018, you need to take action to correct this excess contribution. Here's how you can figure out and rectify your excess HSA contributions for the year:

1. Review Your Contributions and Limits: First, gather all your HSA statements and account information for 2018. Check the total amount you contributed to your HSA for the year.
2. Know the Annual Contribution Limits: For 2018, the annual contribution limit for an individual with self-only coverage was $3,450, and for those with family coverage, it was $6,900.
3. Calculate the Excess Contribution: If your total contributions exceeded the annual limit for your coverage type, the excess amount needs to be distributed from your HSA.
4. Contact Your HSA Administrator: Reach out to your HSA administrator to request a distribution of the excess contribution. They can guide you through the process and ensure it's done correctly.
5. Include the Excess Distribution in Your Taxes: The excess contribution you distribute will not be subject to taxes or penalties if done correctly. Make sure to report this distribution on your tax return for 2018.

By following these steps, you can effectively figure out and address any excess contributions to your HSA for 2018, safeguarding your finances and compliance with IRS regulations.

Understanding how to manage your HSA contributions is crucial. Start by gathering all your financial statements for 2018 and calculating the total amount you've deposited into your Health Savings Account (HSA).