HSA Fundings Questions

[Trawler]

2014 DW and I were in HSA compatible Bronze plan and funded the HSA for 2014. For 2015 we moved to a Silver plan that is HSA compliant on its own however we have income that put us in cost share thus reducing deductible from 3500 family to 2000 Individual/family thus does not meet IRS HSA requirements .
Questions
1. If I funded the HSA again this year not knowing the cost share knocked us out what happens? or what to do? How would IRS know without audit?

2. Can I use funds leftover from 2014 HSA to cover 2015 Expenses ?

Thanks

 

[karen1972]

I'm assuming you took the cost share model on the marketplace and thus it didn't offer an HSA, you simply forgot and contributed to your existing HSA anyway. I'd call them and verify, but I'm pretty sure if that is the case, you need to withdraw that money and any interest earned on it. If you do nothing, then when you file taxes, you will have the HSA contribution form they will have sent, and when asked about your health plan, it will flag it wasn't eligible and you shouldn't have contributed at which point not sure if there is a fine but you would have to take it back out. If you take it all back out, it will show the net contribution as "zero" on the tax form and thus "undo" the mistake so you won't have to worry about it. It should be no harm, no foul at that point unless you contributed to the HSA via pre-tax dollars at which point you would then owe the taxes on that money.


Your 2014 HSA if you were eligible at the time is all good... you can use it as you like to pay qualified medical bills. its just the 2015 money that is at issue.

 

[Senator]

2. Can I use funds leftover from 2014 HSA to cover 2015 Expenses ?

You can use the funds leftover from 2014 HSA to fund 2099 expenses, if you want. There is no time limit.

Many retirees, like myself, figure it is just an expanded Roth IRA. I know I will use at least that much for healthcare sooner or later. Even medicare premiums will be OK to pay.

 

[bingybear]

Q: It’s December and I have noticed that I have overfunded my HSA. What do I do?

A: You have until your tax return is due to make corrections to an overfunded HSA. You’ll need to withdraw the overfunded portion. You can do this by contacting your HSA administrator, and they can provide you with the proper form to request a withdrawal.

Q: I just realized I overfunded my HSA and the tax return deadline has passed. What do I do?

A: Because you missed the withdrawal deadline, you’ll have to pay a 6 percent
excise tax on the excess funds and claim any earnings as income on your tax
return.

from here
note... I would assume this info is still valid.
My HSA charges a fee to withdraw over funded contributions.... check yours.