@Boomhauser wrote:
@Opus 17Thank you for your input. No, the check was recently sent to us, our request was sent on May 30, it already shows on a HSA account (June 3rd) as Previous Year Excess Contribution Distribution: $692.28 and Earnings on Previous Year Excess Contribution Distribution: $0.04. I'm about to call the HSA custodian, but i want to confirm with you first. I'll also wait for his input @dmertz.
In that case, I believe the best thing financially, is to ask if the bank will accept the check back as a rollover, or a return of mistaken distribution. You may need to talk to a supervisor with more knowledge than the typical customer service operator, and explain that you misunderstood the rules for excess contributions and that this is not, in fact, an excess contribution situation, and you would like to put the money back.
If they can't be convinced, then I believe that you have the option of opening a second HSA in your spouse's name at a different bank, and deposit the check there. Be sure to tell them this is a rollover and not a regular contribution. You may be required to pay a monthly service charge on the account, but that will be less expensive than the taxes if you were to keep the money. Then you can spend the money for medical expenses and close the account when it is empty.
