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Posts: 1
Registered: ‎02-28-2018
Accepted Solution

HSA contributions, under 1 year over the next.

Hi all, new guy here.


So I under contributed to my HSA in 2016 by $550 and over contributed in 2017 by $1500. In addition to that mess, a provider overcharged me $950 and refunded the amount by check, From the viewpoint of wanting to keep as much money in the account as possible, I'm thinking reallocate $550 from 2017 to 2016 and then withdraw the remaining excess prior to filing. Is there a better option? What are the tax and penalty ramifications?


My HSA bank is telling me I have to complete three separate transactions:

  1. Tax year correction form to allocate the $550 from 2017 to 2016.
  2. Excess contribution correction form to withdraw the $950 excess contribution for 2017.
  3. Send a check for $950 with a withdraw correction form to make a deposit without impacting my 2018 contribution limit.

Does that sound right?


Thanks for you help.




Esteemed Neighbor
Posts: 216
Registered: ‎02-28-2016

Re: HSA contributions, under 1 year over the next.

I am surprised your bank is willing to address your 2016 shortfall since it is well beyond the cutoff date to make this contribution. I assume that all contributions were made pretax through your employer. The bank will have to issue you a corrected 2016 Form 5498-SA showing the added contribution of $550. Is order to receive a deduction for the contribution is 2016, you would amend your taxes and enter $550 as an after tax contribution. This would necessitate showing this $550 as income on your 2017 taxes to avoid a double tax break. You also show the $950 excess contribution as income on your 2017 taxes. The total is $1500 additional income for 2017. Your 2017 Form 5498-SA should reflect the $1500 total adjustment in 2017 contribution.