How to Stop Contributing to HSA When Hit Limit & Accidentally Overcommitted 401k

Discovering that you have accidentally overcontributed to your HSA (Health Savings Account) when you meant to contribute to your 401k can be a common mistake. It's essential to take prompt action to address this issue. If you find yourself in this situation, here are steps you can take to stop contributing to your HSA:

• Contact Your HSA Provider: Reach out to your HSA provider as soon as you realize the mistake. They can guide you on the necessary steps to rectify the situation.
• Request Excess Contribution Withdrawal: Work with your HSA provider to withdraw the excess contributions. This must be done by the tax filing deadline, including extensions, to avoid penalties.
• Adjust Future Contributions: Review your contribution limits for both your HSA and 401k to ensure you do not overcontribute again in the future. You may need to adjust your automatic contributions accordingly.

It's important to be proactive and address any overcontribution issues promptly to avoid IRS penalties. By following these steps, you can correct the mistake and prevent it from happening again in the future.

Realizing that you've mistakenly overcontributed to your HSA instead of your 401k can be disheartening, but you're not alone in this. First things first, contact your HSA provider immediately to start the process of rectifying your contributions.