How to Take Money Out of HSA for Excess Contribution

If you have contributed more money to your HSA (Health Savings Account) than the allowed limit, you have made an excess contribution. It's essential to address this issue promptly to avoid penalties. Here's how you can take money out of your HSA for excess contribution:

1. Identify the excess contribution: Review your HSA contributions for the year to determine the extra amount.

2. Contact your HSA administrator: Reach out to your HSA provider to inform them of the excess contribution and request a distribution.

3. Ask for a distribution form: Your HSA administrator will provide you with a form to fill out for the excess contribution withdrawal.

4. Provide necessary information: Fill in the required details on the distribution form, including the amount of excess contribution you want to withdraw.

5. Submit the form: Once you have completed the form, submit it to your HSA administrator for processing.

6. Receive the excess contribution: After the withdrawal request is processed, you will receive the excess contribution amount in your bank account.

It's crucial to follow these steps diligently to rectify any excess contributions and prevent tax implications. If you have any questions or need assistance, don't hesitate to consult your HSA provider for guidance.

If you've accidentally contributed more than the yearly limit to your HSA (Health Savings Account), don’t panic! This is a common mistake that can lead to excess contributions. To correct this, start by reviewing your annual contributions to pinpoint the amount that exceeds the limit.