Too much, as in, “You contributed over the set annual limit. Now take it back out.” Is that what your fussing about?
HSAs are great.
https://www.goodrx.com/insurance/fsa-hsa/hsa-excess-contribution
“What is an HSA excess contribution?
Each year, the IRS sets a limit on how much you can contribute to your HSA. An HSA excess contribution is any amount that you deposit in your account over the annual contribution limit.
Your maximum HSA contribution depends on how many months of the year you were HSA-eligible, your age, and the type of HSA you have. And this amount typically increases each year to account for inflation.
For example, the individual HSA contribution limit for 2024 is $4,150. And the family HSA contribution limit is $8,300. These limits are increasing to $4,300 for individual HSAs and $8,550 for family HSAs in 2025. The IRS also allows you to contribute an extra $1,000 — also known as a catch-up contribution — to your account every year if you are 55 or older.
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Make the most of your health savings account (HSA). Here are some HSA benefits that you can take advantage of this year.
Qualified medical expenses: You might be surprised to learn that you can use your HSA to pay for these qualified medical expenses tax-free.
HSAs vs. flexible spending accounts (FSAs): While HSAs and FSAs both allow you to pay for qualified medical expenses tax-free, there are a few differences you should consider.
So let's say you are over 55 years old and you contribute $6,000 to your individual HSA in 2024. Assuming you were eligible to contribute the maximum amount for the year, you will have an excess contribution of $850.
But not everyone is eligible to contribute the maximum amount to their HSA for the year. You can only contribute for the months you were enrolled in a qualified high-deductible health plan (HDHP). If you change your insurance coverage to a plan that's not HSA-eligible, you can no longer contribute money to your account. However, you can still use the existing funds in your account to pay for qualified medical expenses.
Is there a penalty for exceeding HSA contribution limits?
Yes, there is a penalty for exceeding the annual HSA contribution limit. This penalty is known as an excise tax. The IRS imposes excise taxes to discourage certain behaviors, such as making excess contributions.