taxmap/instr2/i5329-011.htm#TXMP780702f0
Part VII—Additional Tax on Excess Contributions to Health Savings Accounts (HSAs)(p5)

If you, someone on your behalf, or your employer contributed more to your HSAs for 2011 than is allowable or you had an amount on line 49 of your 2010 Form 5329, you may owe this tax. But you may be able to avoid the tax on any 2011 excess contributions (see the instructions for line 47, later).

If your contribution limit for your HSAs (line 12 of Form 8889, Health Savings Accounts (HSAs)) is greater than the contributions you made to your HSAs (or those made on your behalf) for 2011 (Form 8889, line 2), enter the difference on line 43. Also include on your 2011 Form 8889, line 13, the smaller of:

• Form 5329, line 43, or
• The excess, if any, of Form 5329, line 42, over Form 5329, line 44.

Enter the excess of your contributions (including those made on your behalf) to your HSAs for 2011 (Form 8889, line 2) over your contribution limit (Form 8889, line 12). Also include on line 47 any excess contributions your employer made. See the instructions for Form 8889 for details.

However, you can withdraw some or all of the excess contributions for 2011 and they will not be treated as having been contributed if:

• You make the withdrawal by the due date, including extensions, of your 2011 return, and
• You withdraw any income earned on the withdrawn contributions and include the earnings in gross income for the year in which you receive the withdrawn contributions and earnings.

Include the withdrawn contributions and related earnings on Form 8889, lines 14a and 14b.

If you timely filed your return without withdrawing the excess contributions, you can still make the withdrawal no later than 6 months after the due date of your tax return, excluding extensions. If you do, file an amended return with Filed pursuant to section 301.9100-2 written at the top. Report any related earnings for 2011 on the amended return and include an explanation of the withdrawal. Make any other necessary changes on the amended return (for example, if you reported the contributions as excess contributions on your original return, include an amended Form 5329 reflecting that the withdrawn contributions are no longer treated as having been contributed).