Hello-
I am having a similar issue but hopefully getting it cleared up all within the same year simplifying things a bit. I have a couple follow-up questions though.
My situation is: I was told by my insurance provider that I was eligible this year to open a HSA. I've never had one before so I did as they suggested and was able to open one with Health Equity. I contributed and used several thousand dollars this year on qualifying medical expenses (but never earned any interest), only to see when I went to renew my health insurance this year through the marketplace that only a rare few high deductible plans actually qualify and the one I had this year wasn't one of them!
I called my HSA provider as this post suggested and they said I need to fill out two forms to get it squared away. The two forms are: HSA Mistaken Distribution and HSA Excess Contribution. I wanted to check here first if those seemed like the right forms to fill out and avoid any penalties which, according to this answer, I shouldn't have to pay any of since I was never eligible. I really don't want to get pegged with some 20% penalty for a mistake I did not know I was making! I also don't know if I should close the account or not. My new health plan for 2022 Does qualify for a HSA but it kind of seems like I should start fresh with a new account. Thanks for any insights!
