What to Do If You Put Too Much Money Into HSA in 2018

So you've accidentally overcontributed to your Health Savings Account (HSA) in 2018, now what? Don't worry, we've got you covered with some helpful steps to resolve this situation and avoid potential penalties from the IRS.

Firstly, it's important to understand that the IRS sets limits on the maximum annual contributions you can make to your HSA account. For 2018, the limit for individuals was $3,450 and $6,900 for family coverage.

If you've exceeded these limits, here's what you can do:

• Contact your HSA provider: Reach out to your HSA provider promptly to inform them of the excess contribution.
• Withdraw the excess amount: You can withdraw the excess contribution and any earnings it has generated before the tax deadline without facing any penalties.
• Seek guidance from a tax professional: If you're unsure about the process or potential tax implications, it's recommended to consult a tax professional for personalized advice.

Remember, it's essential to address the excess contribution promptly to avoid incurring additional taxes or penalties. By following these steps, you can rectify the situation and continue to enjoy the benefits of your HSA without any complications.

If you find yourself in the position of having contributed too much to your Health Savings Account (HSA) in 2018, it's important to act swiftly to rectify the situation and safeguard yourself from any IRS penalties.