Help Needed - HSA Excess contribution

[Milkshake]

Hey everyone,

My HSA admin is refusing to provide a 1099-SA for the excess contributions that they returned to me. I over-contributed by about $200 due to my employer switching admins partway through the year. They returned the exact amount, plus the small amount of interest it earned. Now they are refusing to provide a 1099-SA because I "didn't have any distributions". The rep also says "the 1099-SA isn't for excess contributions". This is absolutely not true.

What am I supposed to do if they don't file a 1099-SA with the IRS, or provide me with one??

Edit to add, the excess contribution was made in December 2019. The excess was returned in Feb 2020 (still part of tax year 2019, right?)

[Blazin]

We did the same thing in 2018 and withdrew the money in January 2019 when we realized.  We had called the provider and they told us we would get a form in 2020 from the 2019 withdrawal, which we did, but now we are confused about our taxes for this year.  Hope someone else chimes in!

[yachi]

I found this in some googling:

If HSA related IRS Form 5498-SA for the tax year in which the excess contribution was made have already been posted under the Statements and Notifications tab of your online account, you will receive an email notice when the corrected form have been posted. The Form 1099-SA for the tax year in which you make the Excess Contribution Removal will reflect the correction made.

This sounds like you don't get a 1099-SA unless the 5498-SA was already filed.  Maybe that's what happened.

[Cadman]

I went through the same thing last year, and it's a mess. Since the disbursement of excess occurred in 2020, it's going to be reflected on '20's 1099-SA you get next year. For tax year '19, you'll need to pay the tax on the excess and the earnings; attach proof from your provider that both were removed from the acct to avoid penalty.

Now the rub. Because some portion of those earnings were accrued in 2020, you'll owe taxes on that when you're figuring your return next year. It was a small enough amount for me that I'll end up just paying on those earnings -again- rather than try to break them out for a month or two.

[Milkshake]

That's frustrating.

I finally got my HSA admin to admit that the 1099-SA is in fact also used for excess contributions ("Ma'am, with all due respect can you tell me what 1099-SA, Box 3, Code 2 says?"). They said they will issue it next year, in Jan 2021.

Further research online indicated that I need to fill out IRS form 8889 this year which will show that the excess contribution was removed during the 2019 tax year, and then keep copies of that and the statement from the HSA admin showing the excess was returned to me and that I paid tax on it. Those copies may be needed when filing 2020 taxes to show why I don't owe any penalties on the excess.

Hope that helps anyone else in this situation.