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What if I accidentally put too much into my HSA?

March 27, 2025March 28, 2025

If you contribute more than the annual limit to your HSA, the excess contributions are not tax-free—and they could result in penalties if not corrected.


⚠️ What to Do:

You can avoid penalties by removing the excess amount (and any earnings on it) before the tax filing deadline, usually April 15.

This makes the extra contribution non-deductible, but you won’t face an IRS penalty if it’s withdrawn properly and on time.


💸 What Happens If You Don’t Fix It?

  • The excess stays in your account and is taxed as income

  • You’ll pay a 6% penalty on the excess each year it remains in the account


đź§  Tip:

Many HSA administrators offer a simple way to remove excess contributions online. Just be sure to act before filing your taxes.

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