Thank you so much for your response @RobertB4444 !
I've regretted participating in HSA at this point - it cost me so much stress and time alreday due to Fidelity incompetence. Unfortunately, my eemployer selected them as custodian for 401k, FSA, HSA. I'd leave them if I could.
I would really appreciate if you could kindly answer these follow-up questions:
1. Is it critical for me to amend my 2023FY return and pay penalty before April 15 deadline of this year? Can it wait a few months? I am going through a lot health and family wise - I was planning on filing for an extension this year. Would that increase the penalty?
2. What is the penalty amount? How big is it?
3. How would you try to bill Fidelity if you were in my shoes?
I escalated to multiple supervisors and they have been unhelpful and they lie a lot: Their supervisors promised to fix this a long time ago and call me if something goes wrong. Not only they didn't fix it and didn't call me, they even sent me a message via internal Fidelity message system saying that the transaction got processed successfully.
So, not only they failed to notify me and fix it despite multiple promised over the course of multiple months, they even LIED. They now claim it was an automated message due to "closure of the case by the back office", but the wording is very clear—the message reads: "we've processed your HSA excess contribution withdrawal successfully".
They keep saying "contact a tax professional". I told them that my taxes are normally very simple and I can do them myself—it's their screw up that made it complicated. I asked them if they were going to pay for the tax professional which their screw-up now made necessary, to which they answer that they will not.
What are good steps to try to force them to pay at least the penalty?
4. Do you know which agencies I can report them for these screw ups besides FINRA?
Thank you so much
