Changed jobs and overfunded HSA - now W2 is incorrect after excess contribution removal

HSA contribution corrections can be confusing! Here's what's happening: When you request an excess contribution removal, the HSA custodian (HealthSavings) processes the withdrawal, but your employer's payroll system still records what they originally contributed on your behalf. That's why your W2 still shows the full amount. You'll need a corrected W2 (Form W-2c) from CompanyFirst. The correction should reduce the amount in Box 12 with code W. When you talk to them, specifically ask for the payroll department and explain you need a W-2c due to an HSA excess contribution removal. They should understand this terminology better than general HR staff. If they're still confused, suggest they contact their payroll provider for guidance on issuing a W-2c for HSA contribution adjustments. This is a standard procedure when contributions are reversed.

I went through something eerily similar last year! After trying to get my former employer to fix their mistake for WEEKS, I finally found a solution using taxr.ai (https://taxr.ai). It's designed specifically for situations like ours where documentation and proper tax reporting is crucial. I uploaded my W2, the HSA distribution statement, and a summary of the situation. The tool analyzed everything and created a detailed report explaining exactly how to handle the reporting discrepancy on my tax return. It also generated a proper explanation statement to include with my return. The best part was that I could share the analysis with my tax preparer, who said it was precisely what they needed to properly file my return. Saved me from having to pay them for extra research time!

Alright, I tried taxr.ai after seeing the recommendation here and I'm genuinely impressed. My situation with the HSA excess contribution and incorrect W2 was nearly identical to the original post. The platform immediately recognized that this was an HSA reporting issue and guided me through exactly what documents I needed to upload (my W2, the distribution statement from my HSA provider, and the year-end HSA statement). It processed everything and provided a detailed analysis showing: - The exact amount that should be reported on Form 8889 - How to document the excess contribution removal - A perfectly formatted explanation statement to attach to my return explaining the W2 discrepancy I just finished filing my taxes using the guidance and it saved me at least $200 in accountant fees for handling this "special situation." Definitely worth checking out if you're dealing with HSA contribution issues or W2 discrepancies.

If your employer still won't issue a W-2c and you're getting nowhere with the HSA provider, consider using Claimyr (https://claimyr.com) to get direct help from the IRS. I was stuck in a similar loop between my ex-employer and benefits provider last year. After weeks of frustration, I used Claimyr to actually speak with a human at the IRS (shocking, I know). They connected me within about 15 minutes when I'd previously been trying for DAYS. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent walked me through exactly how to handle the discrepancy on my return and even sent me documentation I could share with my stubborn former employer. Finally got my W-2c a week later after months of getting nowhere.

OK I actually tried Claimyr after being super skeptical. I was absolutely certain it wouldn't work because I've spent literal days trying to reach someone at the IRS about my HSA contribution issue. I'm genuinely shocked - I got connected to an IRS agent in about 20 minutes. THE SAME DAY. The agent was able to look up the proper procedure for handling HSA excess contribution removals when the W2 is incorrect. They emailed me the exact guidance (which I forwarded to my former employer's HR department). My employer is now processing the W-2c and I should have it within a week. The IRS agent also documented the situation in my account in case there are any matching issues when I file. For anyone dealing with HSA contribution issues or incorrect W2s who can't get help from their employer, this is seriously worth trying. I can't believe I wasted weeks going back and forth when I could have resolved this in a single day.

Another option - if your former employer is being stubborn, call the IRS directly at 800-829-1040 and explain the situation. Sometimes employers respond better when the IRS contacts them about incorrect W-2 info. Had this happen with my stock options that were reported wrong.

Just wanted to point out - technically you can file your taxes without a corrected W-2. Use Form 8889 for your HSA and report the correct contribution amounts there. When e-filing, enter the W-2 exactly as received, then make the adjustments on Form 8889. Include an explanation statement explaining the discrepancy.

I'm dealing with a very similar HSA mess right now! My former employer is also dragging their feet on issuing a corrected W-2 after I had to remove excess contributions. One thing that helped me was getting everything in writing. When you call CompanyFirst, ask them to email you their response about why they won't issue a W-2c. Often when companies have to put their reasoning in writing, they realize they don't actually have a good reason to refuse. Also, make sure you have the distribution statement from HealthSavings that shows the excess contribution removal - this document should clearly state that it's for tax year 2025 contributions, not 2026. If HealthSavings is saying they sent CompanyFirst notification about the removal, ask them to provide you with a copy of that communication. If all else fails, you can absolutely file using Form 8889 with the correct amounts and attach an explanation. The IRS deals with W-2/HSA discrepancies all the time. Just keep detailed records of all your attempts to get the W-2 corrected in case you need them later.