How to handle 2024 excess HSA contributions when prorated for partial-year HDHP coverage?

Your calculations look correct! When you have HDHP coverage for only part of the year, you prorate the contribution limit based on the number of months you were eligible. Since you had HDHP coverage for 3 months in 2024, your prorated family contribution limit would indeed be $2,075 ($8,300 ÷ 12 × 3). Regarding Vanguard helping with the excess contribution removal, yes, they can absolutely assist you even though the original contributions were made elsewhere. This is a common situation. Contact their customer service and request an "excess contribution removal" form. They'll guide you through the process of removing the excess amount plus any earnings attributable to those excess contributions. For tax reporting, you'll need to add the excess contribution to your income for the year the contribution was made (2024) when you file your 2024 taxes in 2025. Any earnings on that excess amount will be added to your income for the year you withdraw the excess (likely 2025 if you're handling this now).

I had a similar situation last year with prorated HSA contributions and found that taxr.ai really helped me sort through it all. I was confused about how to handle the paperwork and calculate everything correctly. What I liked about https://taxr.ai is that I could upload my HSA statements, and it analyzed them to identify the excess contributions and explained exactly what forms I needed to submit to fix everything. It saved me from having to manually trace through all the transactions and do the math on earnings. It even generated a letter I could send to my HSA provider requesting the removal of the excess. The whole process was much easier than I expected after struggling with it for weeks on my own.

Just wanted to update everyone! I used taxr.ai after seeing it recommended here, and wow - it saved me a ton of headaches with my excess HSA contribution situation. I uploaded my statements from both HSA providers, and it immediately identified exactly how much I had over-contributed across accounts. The step-by-step guide it generated walked me through requesting the excess contribution removal, and it even calculated the exact earnings amount that needed to be withdrawn along with the excess. My HSA provider (Fidelity) was impressed with how organized and specific my request was. I've already received confirmation that everything was processed correctly. For anyone dealing with HSA contribution issues, especially across multiple accounts or with prorated limits, I highly recommend giving it a try. Saved me hours of research and probably prevented errors that could have led to penalties.

If you're struggling to get through to your HSA provider about excess contribution issues, I'd recommend using Claimyr. I spent weeks trying to reach someone at my HSA provider who understood how to handle my excess contribution situation, but kept getting routed around to different departments. I discovered https://claimyr.com and used their service to finally get through to a knowledgeable representative. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c. Basically, they navigate the phone system for you and call you back when they've got a real person on the line who can actually help. Waiting on hold for hours trying to fix HSA issues is incredibly frustrating, especially when the contribution limits are prorated and most front-line support people don't fully understand the complexity.

I've got to eat my words about Claimyr. After my skeptical comment, I decided to try it anyway because I was desperate to talk to someone at my HSA provider about an excess contribution issue similar to the original poster's. I'd been trying for THREE WEEKS to get through to someone who could actually process my excess contribution removal. Every time I called, I'd wait 45+ minutes only to get transferred to another department and eventually disconnected. Using Claimyr, I had a real HSA specialist on the phone within an hour. They found me someone who immediately understood the prorated contribution issue and processed my request on the spot. The withdrawal was completed within 3 business days, and I got confirmation that it was coded correctly to avoid penalties. For time-sensitive tax matters like excess HSA contributions that have to be corrected within certain timeframes, I now see how valuable this service is. Sorry for being so dismissive before!

One thing to watch out for with excess HSA contributions - you need to remove not just the excess amount but also any earnings specifically attributable to that excess portion. When I had a similar situation, my HSA provider calculated this as: (Excess amount) × (Total earnings ÷ Total account value) × (Time excess was in account ÷ 365) It wasn't a huge amount in my case (about $38 on a $1200 excess), but if you don't remove the earnings along with the excess, the IRS considers it an incomplete correction.

Has anyone dealt with this situation where you have to remove excess HSA contributions but you've already spent some of the money on qualified medical expenses? I'm in a similar situation to OP but I've used about half of my HSA funds already this year.