When this happens
Either you've gone over your annual contribution limit, or you made a deposit you didn't intend to make at all, whether that's the wrong amount, a duplicate, or a change of mind. Both situations have the same fix: withdrawing the funds.
Why it matters
If you've gone over your annual limit, the IRS charges a 6% excise tax on the excess for every tax year it remains in the account, on top of the contribution being subject to income tax. Withdrawing the excess before your filing deadline removes it from that exposure. Even if you're not over your limit, an unwanted deposit still counts as a contribution unless you withdraw it.
Source: IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans
To fix it
Select Add Expense
Select "Enter details instead"
Select Health Savings Account
Categorize the reimbursement as a Correction
Enter the amount you overfunded by
Enter the rest of the required details and submit
This withdraws the excess from your HSA to your linked account and updates your total contributions for the year.

