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Visitor II

Retroactive medicare caused my HSA contributions for 2016 and 2017 to be excess contributions

Hi, I seem to have quite a mess on my hands.

 

I enrolled in a HDHP in December 2016.  Because of this, I was eligible to contribute $3350 for the 2016 tax year.  I made this contribution on 04/18/2017.  All seemed well and I contributed an additional $4400 for the 2017 tax year on 03/05/2018.

 

Now in May 2018, I find out I was fully approved for disability benefits.  This was made retroactive so that my Part A medicare coverage started on 10/01/2016.  Because of this, I believe all my 2016 and 2017 HSA contributions are considered excess contributions.

 

I believe I need to fill out 2 separate Distribution Request forms with my HSA administrator to remove these excess contributions.  They will figure out how to divvy up the gains for each tax year and send me updated 5498-SA and 1099-SA forms for both the 2016 and 2017 tax years.  Does that sound right?

 

The confusion I have is what needs to be done next.  I already filed my 2017 tax return back in March 2018.  Do I need to file an amended 2016 tax return (for the 2016 excess contributions and gains), and then also file an amended 2017 tax return (for the 2017 excess contributions and gains)?  Or, do I only need to file an amended 2017 tax return and account for the excess contributions for 2016 on the 2017 tax return?  I assume since it is not yet October 2018, I can still amend my 2017 tax return to avoid penalty on 2017 excess contributions.  For the 2017 HSA contribution that I remove, do I simply say I did not contribute to an HSA for 2017, or do I need to say I did contribute and then removed the excess on some other form or line item?

 

Thank you for any input.  This is giving me such a headache.