Midpack
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I made the maximum family HDHP/HSA contribution last year. I retired at the end of June. Never dawned on me, but TurboTax says you have an excess contribution that you must take as income - their worksheet shows the maximum for any year is prorated by the number or months I was under an HDHP (6 months). OK.
So I call my HSA admin (HealthEquity), explain the above, and tell them I need a check taking half of the contribution back as ordinary income. They have a "Distribution of Excess HSA Contribution Form" on their website, so I think "that's me!" But the HealthEquity rep (after consulting another expert) tells me, 'no, if you were eligible for all of 2010 (I was), you can still contribute the maximum for 2011.' They go on to tell me retiring mid year doesn't matter unless I became eligible for Medicare (I didn't).
I read up online sources, IRS and other, they seem to agree with TurboTax, but the IRS regs especially are mind numbing reading and most of the examples are folks 65 who's partial year HSA eligibility is due to Medicare eligibility (not my situation). I have already read all the IRS 1099-SA, Form 8889 & HSA instructions & forms.
I called the IRS help line, but after 30 minutes of "the next available agent.....zzzzzzzzzzz", I hung up.
Not something that ever even dawned on me before. Anyone know the right answer by any chance?
So I call my HSA admin (HealthEquity), explain the above, and tell them I need a check taking half of the contribution back as ordinary income. They have a "Distribution of Excess HSA Contribution Form" on their website, so I think "that's me!" But the HealthEquity rep (after consulting another expert) tells me, 'no, if you were eligible for all of 2010 (I was), you can still contribute the maximum for 2011.' They go on to tell me retiring mid year doesn't matter unless I became eligible for Medicare (I didn't).
I read up online sources, IRS and other, they seem to agree with TurboTax, but the IRS regs especially are mind numbing reading and most of the examples are folks 65 who's partial year HSA eligibility is due to Medicare eligibility (not my situation). I have already read all the IRS 1099-SA, Form 8889 & HSA instructions & forms.
I called the IRS help line, but after 30 minutes of "the next available agent.....zzzzzzzzzzz", I hung up.
Not something that ever even dawned on me before. Anyone know the right answer by any chance?
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