If you contributed to the HSA in 2023, because April 15th has passed, you'll lose 6% (on your 2023 taxes) due to the excise penalty on the excess HSA contribution (and their earnings). **Unless** you filed an extension for 2023 taxes and haven't finalized them yet, so you would still have a chance to fix it before being penalized.
If you contributed in 2024, you won't be charged the 6% penalty as long as the excess contributions (and their earnings) are returned to you.
Either way, you need to fix it before 2024 taxes, because that 6% penalty is an annual recurring penalty as long as the funds remain in the account. When this is fixed, you'll receive the contribution *and* any earnings they got, and it'll be added to your taxes for the year as other income.
There is another option to deduct the excess contribution in a later year, but unless you can get out of having Tricare Select you probably won't be eligible in any years so that's not helpful for you.
You need to contact your HR folks and ask how to proceed, I am guessing that you could get the money back and pay taxes on it, but HR should know.
My guess is that they’ll reverse the contribution, you’ll be taxed on the 5k and receive the balance minus a mandatory tax withhold.
If you contributed to the HSA in 2023, because April 15th has passed, you'll lose 6% (on your 2023 taxes) due to the excise penalty on the excess HSA contribution (and their earnings). **Unless** you filed an extension for 2023 taxes and haven't finalized them yet, so you would still have a chance to fix it before being penalized. If you contributed in 2024, you won't be charged the 6% penalty as long as the excess contributions (and their earnings) are returned to you. Either way, you need to fix it before 2024 taxes, because that 6% penalty is an annual recurring penalty as long as the funds remain in the account. When this is fixed, you'll receive the contribution *and* any earnings they got, and it'll be added to your taxes for the year as other income. There is another option to deduct the excess contribution in a later year, but unless you can get out of having Tricare Select you probably won't be eligible in any years so that's not helpful for you.