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Correcting an overcontribution

Contributed more than your annual limit, or made a deposit you didn't mean to? Here's how to withdraw it.

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.

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