Question

Diana (43) contributed 225 per month to a self-only health savings account (hsa) through her paycheck in 2022. Her employer contributed 1,000 for the year. She had no other health insurance. What is Diana's excess contribution amount?

Answer 1

Diana's total HSA contributions in 2022 were $3,700, exceeding the IRS limit by $50, which is her excess contribution amount.

Step-by-step explanation:

The student's question is about determining Diana's excess contribution to her health savings account (HSA) for the year 2022. Diana contributed $225 per month, which sums up to $225 × 12 = $2,700 for the year. Her employer also contributed $1,000, making the total contributions $3,700 for the year.

For the tax year 2022, the IRS contribution limit for a self-only HSA was $3,650. Diana's total contributions exceeded this limit by $3,700 - $3,650 = $50. Therefore, her excess contribution amount is $50.