Employer HSA Contribution

Employee received a W-2 showing box 12 Code W of $7900. Taxpayer is 50 years old, with a family HSA. It appears to me the limit is $6900 for 2018. This is a very large employer, with tons of employees, so I feel like I must be missing something.

However, if employer put in $1,000 too much, I know there is a 6% tax to be paid. Would client also have to withdraw the $1,000?

Keep in mind that W-2 has to report current year contributions, but HSA can accept prior year contributions up until April 15th of the following year.
Maybe some of those 2018 deposits related to 2017 (?). Just thinking out loud here.

Client did have $6,750 contributed the prior year as well.

I'm assuming since you included their age (are they exactly 50, or around 50?) you know this, but just in case (and for future search results) - they're not over 55 and qualifying for the additional $1,000 catch up contribution? (I only realized that HSAs had the catch up in the past year, don't have many clients with them and it hadn't happened before!)

Yes, they are exactly 50. I did know there is a catch up, but only after researching it. I don't have many clients with them either.

Family contribution for 2018 is $6,900. Is the wife 55 at 12/31? If so, you are good to go.

The W code is the sum of the amount EE elected to be withheld + the amount the ER contributed.

The timing difference referenced by Capt can only happen if the EE wrote the check to the custodian outside of payroll.

If this never happened, spouse under 55, then you have an excess contribution of $1,000. See pub 969 for the two options for excess contribution.

https://www.irs.gov/publications/p969#e ... 1000204080

The wife (employee) is 50. Her husband is 58 at end of 2018. Are you allowed the additional contribution if either one of them is over 55? Seems like you are saying its ok, correct Doug?

Yes, each spouse to the family plan can take advantage of the catch-up contribution. See page 6 of the pub.

It is clear as mud to me from reading the pub and research material I have used! I'm just going to take your word for it Doug! Thank you everyone!