I have a primary job that included medical insurance and I picked a High Deductible Plan with an HSA. I contributed the maximum amount of $8100. This was from Jan 2020 to Dec 2020.
In June of 2020, I was able to secure a 2nd job to make ends meet. I forgot to decline the insurance within the 30-day enrollment period and I can’t change it at all now, so I have a 2nd medical insurance which is not a high deductible plan and there is no HSA involved.
While doing my taxes for 2020, I read about the HSA and one of things it says is that you can’t have HSA if you are covered by another medical insurance program. So it seems now my eligibility for an HSA is probably terminated?
So, my questions are:
- What are the penalties for having an HSA/High Deductible Plan and also 2nd non-HSA medical insurance program both through my 2 different employers?
- Should I get with the HSA plan administrator and have them return the HSA money to me that was deducted from my primary job paycheck to avoid penalties?
- My HSA administrator has an opened in error form which I can fill out. However, since the funds were distributed to the HSA company through my employer, who will the funds actually go to? The employer or me?
- If the employer, how will those funds get back to me? As added income in my paycheck?
- Can I specify that they send the funds to me and I add it to my income and pay taxes on it before the filing deadline of April 2021?
- Should I do nothing at all?
