When someone over contributed the HSA, and she wants the fund to remain there, what does she need to do?
From the reading of the IRS pub 969, https://www.irs.gov/pub/irs-pdf/p969.pdf, I get the following steps:
1 - "you must report the excess as “Other income” on your tax return".
2 - fit the excess in next year's limit and deduct it next year.
My questions are:
- What do we do with earnings? I do see when you withdraw the excess, you should withdraw the earnings, but the IRS only says report the excess as "other income".
- Does she have to notify her HSA custodian so that some forms are generated? Or we just deal with it on the tax returns?
Thanks.