* I have an HSA that started at a local credit union in 2016 and was transferred to Fidelity in 2019. I had an HDHP in 2016-2022, but not in 2023 or 2024.
* Apparently I didn't write the intended contribution year on a $3850 contribution check I wrote in March 2021 for Tax Year 2020 and it was credited to 2021. I made max contributions in subsequent years and didn't realize my mistake until it showed up as an overcontribution in 2022 when we had to amend 2022. So my questions below are all about making that apparent $3850 (assigned to 2022 thought not written in or for 2022) over contribution right.
* I haven't filed 2023 yet. I have an extension and will file in a few weeks.
* If I withdraw the $3850 in good time before the 2023 extended filing deadline of 10/16/2024, am I correct that the $3850 will be added to my 2023 taxable income and I will also pay a 20% penalty? (I may or may not want to take the extra $3850 in income in 2023--haven't decided yet.)
* If I I choose to wait and withdraw the $3850 early in 2025 (before 2024 filing deadline), am I correct that I will pay a $231 excise tax on my 2023 1040 and then the $3850 will be added to my 2024 taxable income and I'll pay the 20% penalty at that time?
* Last, is there anything in particular I should emphasize to Fidelity (when I finally take the penalty-triggering $3850 out) so that everything goes smoothly and this "goes away" as uneventfully as possible?
Thank you in advance.
* Apparently I didn't write the intended contribution year on a $3850 contribution check I wrote in March 2021 for Tax Year 2020 and it was credited to 2021. I made max contributions in subsequent years and didn't realize my mistake until it showed up as an overcontribution in 2022 when we had to amend 2022. So my questions below are all about making that apparent $3850 (assigned to 2022 thought not written in or for 2022) over contribution right.
* I haven't filed 2023 yet. I have an extension and will file in a few weeks.
* If I withdraw the $3850 in good time before the 2023 extended filing deadline of 10/16/2024, am I correct that the $3850 will be added to my 2023 taxable income and I will also pay a 20% penalty? (I may or may not want to take the extra $3850 in income in 2023--haven't decided yet.)
* If I I choose to wait and withdraw the $3850 early in 2025 (before 2024 filing deadline), am I correct that I will pay a $231 excise tax on my 2023 1040 and then the $3850 will be added to my 2024 taxable income and I'll pay the 20% penalty at that time?
* Last, is there anything in particular I should emphasize to Fidelity (when I finally take the penalty-triggering $3850 out) so that everything goes smoothly and this "goes away" as uneventfully as possible?
Thank you in advance.
Statistics: Posted by anders37 — Thu Sep 19, 2024 3:29 pm — Replies 3 — Views 134