Hi,
I created a health savings account (HSA) thru my employer last year. They contributed a small amount of money, I contributed none. The problem is that it turns out I was ineligible to open and contribute to an HSA because I was also covered by a non HDHP plan.
So, I need to close the account and return the money. When I called the bank to close the account, they sent me a distribution form. There is an option to fill out Excessive Contribution, and also Prohibited Transaction. Which should I fill out? Also, how should I report this on my taxes?
Thanks!
