Timeline for How do I declare an HSA contribution that exceeds IRS limits in order to pay the 6% tax on the excess?
Current License: CC BY-SA 3.0
9 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jan 2, 2018 at 19:13 | vote | accept | Roddy of the Frozen Peas | ||
| Jan 2, 2018 at 19:00 | comment | added | stannius | @RoddyoftheFrozenPeas I think they have until the tax filing deadline for the year in question, e.g. April 15 or maybe Oct 15. | |
| Jan 2, 2018 at 18:33 | comment | added | Roddy of the Frozen Peas | @stannius - OK that makes sense. But wouldn't the withdrawal have had to happen prior to January 1 in order to avoid the 6% excise? | |
| Jan 2, 2018 at 18:12 | comment | added | stannius | @RoddyoftheFrozenPeas the excess contribution is already taxed as normal income. Withdrawing it avoids the extra 6% penalty on top of the regular income tax rate, which will be due no matter what OP does. | |
| Dec 28, 2017 at 20:59 | comment | added | Roddy of the Frozen Peas | Wouldn't withdrawing the excess then cause it to count as -- and be taxed as -- normal income, under the regular income tax rate? | |
| Dec 28, 2017 at 20:34 | comment | added | Nosrac | I was suggesting that you withdraw the extra amount you contributed. This is essentially reversing part of a contribution you made to correct for the over contribution | |
| Dec 28, 2017 at 20:33 | comment | added | Nosrac | In the answer you linked to, OP is asking about using an HSA to pay insurance premiums. Premiums aren't a qualified expense, which was the illegal part | |
| Dec 28, 2017 at 20:10 | comment | added | Roddy of the Frozen Peas | I don't understand what you mean by your last statement. I thought my options were to: A.) leave the money where it is and pay the penalty; B.) move the excess contribution to next year (which takes a "processing fee" greater than the tax hit); or C.) use the money for a qualified expense which is illegal. | |
| Dec 28, 2017 at 19:39 | history | answered | Nosrac | CC BY-SA 3.0 |