How to Fix an Over Contribution to an HSA for 2018

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Fixing 2018 HSA over-contributions steps

If you've made an over-contribution to your HSA for the tax year 2018, don't worry, there are steps you can take to fix it and avoid any penalties. Here's what you can do:

1. Withdraw the Excess Contribution: Contact your HSA administrator and request to withdraw the excess contribution amount along with any earnings attributable to it. This must be done before the tax filing deadline for the year in question.

2. Notify the Administrator: Inform your HSA administrator that the withdrawal is for an excess contribution correction. They will provide you with the necessary forms and guidance on how to proceed.

3. Penalty Avoidance: By withdrawing the excess amount, you can avoid a 6% excise tax penalty on the over-contribution.

4. Amend Your Tax Return: If you've already filed your tax return with the excess HSA contribution, you will need to file an amended return to correct the error.

If you've realized that you've over-contributed to your HSA for the tax year 2018, take a deep breath—correcting this is easier than you might think! Start by contacting your HSA administrator to arrange for the withdrawal of the excess contribution and any earnings it accrued. Make sure to do this before the tax filing deadline to avoid complications.