Section 223(f)(3) of the tax code permits only an excess contribution to be returned. Since you were eligible to make the contribution, the distribution from the HSA 2 weeks after the contribution was made can therefore only be a normal distribution. It's not entirely clear from your question whether or not this distribution was contributed to the employer's HSA in 2016 as a rollover contribution done within 60 days following the day the distribution was received from the earlier HSA, however it seems that you are saying that it was not. If it was not, any portion of the distribution from the HSA not used for non-reimbursed qualified medical expenses incurred after the establishment of your HSA is subject to tax and, if you were under age 65 at the time of the distribution, a 20% early-distribution penalty.
