How to Find Out If I Overfunded My HSA?

Discovering if you have overfunded your Health Savings Account (HSA) can be crucial in managing your finances efficiently. Here are some steps to help you determine if you have contributed more than the allowed limit:

1. Check Your Contribution Limits: Review the annual contribution limit set by the IRS for HSAs. For 2021, the limit for individuals is $3,600 and $7,200 for families.
2. Calculate Your Contributions: Add up all the contributions made to your HSA throughout the year, including any employer contributions.
3. Consider Catch-up Contributions: If you are 55 or older, you are eligible for an additional catch-up contribution of $1,000 per year.
4. Compare with the Limit: Compare the total contributions to the IRS limits. If you have exceeded the allowable amount, you have overfunded your HSA.
5. Correcting Excess Contributions: If you have overfunded your HSA, you need to take corrective action. You can withdraw the excess amount before the tax deadline to avoid penalties.

Finding out if you've overfunded your Health Savings Account (HSA) is essential for keeping your finances in check. Start by looking over the contribution limits set by the IRS for the applicable tax year, as these limits can change. For instance, the limit for individuals and families may vary, so staying updated is key.