When doing my taxes I found out that a Dr. overcharged me in 2024 and will be sending me a refund by check for the distribution. However, at the end of 2024 I transferred my HSA account to another financial institution. When I contacted the old HSA institution they said they could not take the money back or re-open my account and correct the 1099-SA. The new HSA institution said they could not legally accept the refund back into my account since it was distributed by a different HSA institution since they have no record of the transaction. Is my only option to just keep the money and eat the penalty? It would end up being hundreds of $. Is there any way to force the new HSA institution to accept the refund? Any advice on IRS documents that I can use to back up my case?
