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I have an existing HSA but did not have a qualifed HDHP in 2017. I enrolled in a HSA-qualified HDHP for 2018 and made a post-tax contribution to my HSA in January, 2018 but it was applied to 2017. My bank is saying that I have to fill out an excess contribution form to withdraw the funds and then have them re-deposited for 2018. I am a 1099 worker therefore it does not seem that this would be an excess contribution situation. I have filed my 2017 taxes and did not claim the HSA contribution. Do I leave it at that and lose the tax advantage or are there other options? I initially wanted them to just update the contribution form to reflect 2018 but the only option they offered was the excess contribution withdrawal.

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You were not eligible to contribute in 2017 because you did not have an HDHP. Therefore, when you contributed in January 2018 and it was applied to tax year 2017, that was a mistake. If the bank is telling you that you should fill out an excess contribution withdrawal form so they can recategorize the contribution to be for tax year 2018, then that is what you should do.

I am a 1099 worker therefore it does not seem that this would be an excess contribution situation.

The fact that you are a 1099 worker has absolutely no bearing on your HSA. You were not eligible to contribute in 2017, so your contribution needs to be applied to 2018.

I have filed my 2017 taxes and did not claim the HSA contribution. Do I leave it at that and lose the tax advantage or are there other options?

You won’t be losing the tax advantage. You’ll claim the HSA contribution deduction when you do your 2018 taxes.

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