In March of 2021 I deposited $8000 into my HSA account but am now being told by my custodian that it went toward my 2021 contribution, not the 2020 as I intended, which follows the same pattern I have established over the past few years.
They say it's too late to redirect it as a contribution for the 2020 tax year because it was deposited in March of 2021. However, I claimed that $8000 as an HSA contribution when I filed my 2020 taxes.
Would the IRS allow me to correct this deposit with the custodian to show it being contributed in 2020, or do I have to amend my taxes to show no contribution for 2020?
I can't use it for 2021 because my husband goes on Medicare in May and I in December, so after prorating our eligible HSA contributions, we will have contributed a few thousand in excess.
To make matters worse our HSA custodian, per our request, processed ANOTHER $8000, which basically has nowhere to go (our intention was to have it go toward our 2021 contribution) and would create a situation where it would be very much in excess of the allowable contribution. This custodian also states they cannot stop the deposit nor put a freeze on my account to refuse the incoming deposit.
Any advice? Thank you!