HSA Excess Contribution

[stridder]

Hi Guys,

I had Excess Contribution (i.e. over 3600$) to HSA account in 2021, and returned amount excess contribution in 2022 (contacted HSA bank of course for this - submitted a form/letter they require).
All done before 2021 tax deadline (i.e. on time), but in 2022.

Bank returned excess contribution amount for 2021 to me, so the total contribution is right for 2021.

HSA bank never updated 5498SA nor 1099 forms to reflect returned excess contribution amount.
Bank is saying 5498SA nor 1099 forms for 2021 will be updated, and excess contribution amount will be somehow reflected in NEXT YEAR 1099 (i.e. for 2022).

Should HSA bank issue updated 5498SA or 1099 forms for 2021?
Does HSA bank report 5498SA or 1099 to IRS?
How does IRS finds if there's excess contribusion?

I've spent quite a while talking to bank reps - they give me conflicting info every time I call.

Thank you!

 

[Taxing Matters]

First read the discussion of excess contributions in IRS Publication 969 on page 8. In order to fix it, you had to withdraw not just the excess contribution but also any earnings that were made on the excess amount before the due date of your 2021 return.

 

[stridder]

In order to fix it, you had to withdraw not just the excess contribution but also any earnings that were made on the excess amount before the due date of your 2021 return.

Thank you for your response!
Earnings won't exceed 49 cents, so probably will be rounded to zero. There's only small interest.

 

[stridder]

Found relevant article with 1099 example (rather to save the link).