How to Report HSA Contributions That Were Not Allowed

For individuals who have made contributions to their HSA that were not allowed, it is important to take the necessary steps to address this issue.

Here are some important points to consider when reporting HSA contributions that were not allowed:

• Review your HSA contribution limits to ensure compliance with IRS regulations.
• If you have over-contributed to your HSA, you must take action to correct the excess contribution.
• Consult with your HSA provider or tax advisor to determine the appropriate steps to address the excess contribution.
• File IRS Form 5329 to report the excess contribution and any associated taxes or penalties.
• Keep detailed records of any corrected contributions and communications with your HSA provider or tax advisor.

By following these steps and addressing any unauthorized HSA contributions promptly, individuals can avoid potential tax implications and penalties.

It’s crucial for individuals who have accidentally contributed more than allowed to their Health Savings Account (HSA) to address this issue swiftly and effectively.