Back in 2016 the company I work for went through a huge transition. Lots of things changed, but the relevant part is that early in the year we switched accounting systems and HSA providers.
When I filed my 2016 taxes, I forgot about the second HSA provider, and so filed just the information provided by the first HSA provider. As it turns out, my company had a similar problem but in the opposite direction - my W-2 from them shows my HSA contributions from the second HSA provider but not the first.
The result is that it looks like I withdrew several thousand dollars from my HSA, but most of those withdrawals weren't marked as medical payments. So as you might expect, I received a nice letter from the IRS saying that since those withdrawals weren't for medical expenses, they were income, and as a result I owe extra taxes.
I now have the forms from both HSA providers, and I'm happy to send them to the IRS, but then it will be obvious that the HSA forms (mostly the 5498) don't line up with my W-2 where it shows HSA contributions. It will also be obvious that I over-contributed in 2016 (since neither my company nor I remembered about both HSA providers).
My company is not particularly interested in sending me an updated W-2 for 2016 (I don't even know if that's allowed). Their only advice is that I should contact my current HSA provider and ask for a withdrawal/refund of the rolled-over funds, which would then cause an updated 5498 to be issued.
- Would this work?
- Is this my best option for clearing up this situation?