My wife and I switched to an HSA eligible health plan mid year where the employer contributes $2000 towards expenses. What we realized a few months later was that my pre-existing health FSA of $400 made us ineligible to contribute to an HSA, we since corrected our contributions to make zero HSA employee contributions for the year. However now that I am prepping our taxes for 2022 I am wondering if the employer contribution of $2000 was also ineligible for us?
If it turns out that the employer contribution is dis-allowed, then our added complication is that we spent about half of that money already on (eligible) expenses, so we are not able to simply withdraw the money fully as an overcontribution. What is the most appropriate way for us to correct this?
