I have an HSA (HSA #1) established and funded starting in 2015. It has $5,000 in it that has accumulated from 2015 to 2018. I lost HDHP coverage through employer in 2018 and did not have HDHP insurance for 9 months. So no HSA contributions. No reimbursements made since January 2018.
I gained another HDHP coverage through employer recently and established another HSA (HSA #2). There have been a few months worth of payroll deductions and it now has $800. Expected to be $2,000 at year end. Residency state is NC, if that matters.
I have some Qualified Medical Expenses (QME) from January 2018 through today worth $2,000, of which $600 were incurred after HSA #2 was established and funded.
HSA #1 is great (stock investment, no fees, etc.); HSA #2 is not good (monthly fees, no interest, no investment options). I will close HSA #2 as soon as I switch to non-HDHP plan next year. This will incur transfer fees unless I zero out the balance and close the account.
Question: Can I reimburse from HSA #2 all of the $2,000 of QME without having to pay a penalty on my taxes? (HSA established/funded issue.)
