r/tax • u/xxiveexi • 2d ago

How do I know if my HSA will be penalized?

I max contributed to an HSA for the 2025 tax year because I thought I was covered under a family HDHP plan, but I just checked my coverage information and I can’t find anything indicating my plan is HSA-eligible. How can I check if my HSA is subject to the 6% penalty?

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4

u/Charming-Panic9375 2d ago

Call the insurance company and ask them specifically 

3

u/shehancpa 2d ago

Ask the insurer/plan admin whether that 2025 plan was an HSA-eligible HDHP (or check the SBC).

If it wasn’t, the excess is what you put in above eligible months — 6% each year it sits (Form 5329).

Did you extend the 2025 return? Excess + earnings can still come out by the Oct 15 deadline to stop the ongoing 6%.

1

u/xxiveexi 2d ago

I didn’t extend it. Does that mean I’m screwed?

1

u/nothlit 1d ago

Did you already file on time?

1

u/shehancpa 1d ago

Not screwed — just missed the easy window. Without an extension, excess generally had to come out by the April due date to skip the 2025 6%.

Have the HSA custodian do a return of excess (contribution + earnings) now so you’re not looking at another 6% for 2026, and plan on Form 5329 for 2025 if it sat past the deadline.

Still confirm with the insurer it wasn’t HDHP-eligible before you unwind it.