HSA EXCESS CONTRIBUTIONS
Can a distribution for eligible medical expenses from an HSA be treated as a withdrawal to mitigate an excess contribution? Taxpayer’s spouse contributed to HSA through employer, but was receiving medicare.
Can a distribution for eligible medical expenses from an HSA be treated as a withdrawal to mitigate an excess contribution? Taxpayer’s spouse contributed to HSA through employer, but was receiving medicare.
Permalink Submitted by David Mertz on Fri, 2018-11-02 15:59
A regular HSA distribution corrects an excess HSA contribution only if the distribution occurs after the year for which the contribution is made, the 6% excess contribution penalty is paid for all the years prior to the distribution year and the distribution is reported as a taxable distribution, not as a distribution applied to qualified medical expenses.
Permalink Submitted by JEFFREY MACK on Fri, 2018-11-02 16:42
Thank you