Need some help on HSA, 8889 and 5329

[jklcpa]

Would someone please check me on this scenario below.

Young single guy contributes too much to his HSA in 2012 by $587, properly reported on 2012 form 5329 and pays the little penalty.

His HSA contribution limit for 2013 is $3,250. He makes no contributions into it and he has no unreimbursed medical expenses.

Form 5329, line 42 shows the excess contrib from LY of $587
First question - lines 43 and 45 show $3,250? (the excess of CY contrib limit over contribs paid in to the HSA). Is this the correct entry?

Then on form 8889, line 2 is blank or -0- because no CY contribs, the limit of $3,250 fills in the appropriate lines (3,5,6,8,and 12).

Here's my second question - instructions for the 5329, line 43 say:

Also include on your 2013 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.

The excess of line 42 over 44 would be the $587.

Does this person actually get to deduct the $587 in 2013 that is the 2012 excess contribution because he didn't make any contributions into his HSA for 2013?

[jklcpa]

Found my answer in pub 969. For anyone else that's interested -

Deducting an excess contribution in a later year. You may be able to deduct excess contributions for previous years that are still in your HSA. The excess contribution you can deduct for the current year is the lesser of the following two amounts.

Your maximum HSA contribution limit for the year minus any amounts contributed to your HSA for the year.

The total excess contributions in your HSA at the beginning of the year.

Amounts contributed for the year include contributions by you, your employer, and any other person. They also include any qualified HSA funding distribution made to your HSA. Any excess contribution remaining at the end of a tax year is subject to the excise tax. See Form 5329.