How I Corrected My Excess HSA Contribution Issue
Summary of User’s Issue and Solutions:
- The main problem reported by the user is an excess contribution to their HSA and uncertainty about how to correct it.
- It is suggested that the user consult a tax adviser for personalized guidance on their situation.
- The user can initiate the Return of Excess (ROE) process by filling out a specific form provided by Fidelity.
- Fidelity will calculate any associated earnings or losses that need to be removed along with the excess contribution.
- For questions about overcontributions, the Fidelity HSA team is available for assistance during business hours.
- In response to the user’s follow-up questions, Fidelity clarified that the 9-digit account number should be used and recommended contacting the HSA team for handling employer contributions.
Here’s the full thread
I made an excess contribution to my HSA. How do I correct it?
We can walk through this process with you, @cire. Thanks for reaching out!
To start, we suggest reaching out to a tax adviser about your specific situation, as Fidelity does not offer tax advice.
Since you’ve overcontributed to your HSA, you can go through the Return of Excess (ROE) process. The process can be started by filling out the form linked below.
HSA Return of Excess (PDF): https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/customer-service/HSA-return-of-excess-contributions.pdf
In addition to the excess contribution, we use an IRS calculation method to determine if any earnings or losses associated with the excess contribution must be removed. As such, you may wait until the final figure to be removed has been calculated and processed.
Once an ROE amount has been calculated, a letter will be uploaded to your Documents page on Fidelity.com with additional details. You can view the letter by clicking the “Accounts & Trade” tab and choosing “Documents.” Expand “Other Documents” on the following page and select “Account records.”
If you have general questions about overcontributing to your HSA, our Fidelity HSA team is an excellent resource. Associates are available Monday through Friday, 8:30 a.m. – 8:00 p.m., ET, and can be contacted through the link below:
Contact Us: https://www.fidelity.com/customer-service/contact-us
Please feel free to reach back out with any other questions. 🟢
Thank you!
You’re welcome! 🟢
Follow-up questions: (1) The form asks for an account number and has space for 9 digits, but my HSA account has 13 digits. What am I supposed to do? (2) I didn’t realize my employer also contributed to my HSA and since I’m already at cap this means their monthly contributions will continue to be excess. I don’t want to say ‘no’ to their contributions, so how do I handle this going forward?
Is your HSA at Fidelity? When you start the online ROE request on Fidelity.com your 9-digit Fidelity account number is generally prefilled on the form. For your second question, we recommend contacting our HSA team at the link in our previous message. 🟢