Doing my taxes and found out DW contributed HSA more than the limit by $398. We are not sure where that excess money came from. We both worked in the same company and had payroll deduct the same amount. My W2 shows correct amount. We both have since retired in January so no detail paper trail saved.
TurboTax says she could go back and withdraw that amount before 4/15/19 or pay 6% tax on the excess. I know you can not recharacterize Roth conversion anymore. But, I guess for HSA contribution, you still can.
Well, Megacorp has moved all HSA accounts to a new company. Money from old HSA account is now $0. New company account is not activated yet. It seems more trouble than just pay the 6% tax on that $398.
TurboTax does generate Form 5329 for that. But why only 6%? Shouldn't that be whatever tax bracket I have?
TurboTax says she could go back and withdraw that amount before 4/15/19 or pay 6% tax on the excess. I know you can not recharacterize Roth conversion anymore. But, I guess for HSA contribution, you still can.
Well, Megacorp has moved all HSA accounts to a new company. Money from old HSA account is now $0. New company account is not activated yet. It seems more trouble than just pay the 6% tax on that $398.
TurboTax does generate Form 5329 for that. But why only 6%? Shouldn't that be whatever tax bracket I have?