If my employee exceeds their annual maximum contribution amount can they do anything to correct the mistake and avoid a tax penalty?
Yes, we will send a reminder to review your contributions in the October account statement. If the account holder has exceeded the limit for the calendar year, they can fill out a “Health Savings Account Distribution” form located in the Forms section of our website; there is a Correction of Excess Contribution box that should be checked under Distribution Reason. Your employee should make a copy for your records and mail the form to HSA Operations, P. O. Box 1828, Columbus, Georgia 31902-1828. The withdrawal for the excess contribution must be made by writing a check from the account by the due date, including extensions, of the account holder’s tax return along with any income earned on the withdrawn contributions. The earnings will need to be included in “other income” on the tax return for the year they withdraw the contributions and earnings. They can not claim a deduction on their Form 1040 for the amount of the withdrawn contributions. For any questions about this process, the a
If the account holder has exceeded the limit for the calendar year, they can fill out a “Health Savings Account Distribution” form located in the Forms section of our website; there is a Correction of Excess Contribution box that should be checked under Distribution Reason. Your employee should make a copy for your records and mail the form to HSA Operations, P. O. Box 1828, Columbus, Georgia 31902-1828. The withdrawal for the excess contribution must be made by writing a check from the account by the due date, including extensions, of the account holder’s tax return along with any income earned on the withdrawn contributions. The earnings will need to be included in “other income” on the tax return for the year they withdraw the contributions and earnings. They can not claim a deduction on their Form 1040 for the amount of the withdrawn contributions. For any questions about this process, the account holder should call 1-877-367-4HSA and one of our customer service representatives wil
Related Questions
- What is the maximum allowable annual contribution to the voluntary Tax Sheltered Annuity Plan (403(b)) and/or Deferred Compensation Plan?
- If my employee exceeds their annual maximum contribution amount can they do anything to correct the mistake and avoid a tax penalty?
- Is there a penalty for contributing in excess of the annual maximum contribution for HSAs?
