First thank you so far!
So as I see it there are pretty much only 3 options how to handle it:
After due date:
1) Paying myself out before retirement which means I pay normal income tax on it and 20% penalty on it (and the 6% I assume)
2) Paying 6% penalty for it on my tax return and putting the excess amount from last year in this year HSA (assuming I don’t have an HRA but an HSA).
Before due date:
3) Contact my HSA provider explain the situation and hopefully getting the money back then I only deal with whatever fees the HSA provider charges.
I would obviously try number 3 but there is another part I need some information on:
As I mentioned I’m also this year insured on my old job (which means since January 1) although I’m now part time there and they normally don’t insure part timer; but I worked full time in the measurement timeframe. I didn’t expected/knew that which means I can get insured this year or need to cancel it (which I didn’t do because I didn’t expected that and had to many other things on my mind).
I definitely want the HSA account over the HRA account in the long run.
1) If I keep the HRA for this year I can’t contribute this year in the HSA and I also need to get the contributions back which I did already this year, correct?
2) If I quit my part time job with the HRA (since they most likely doesn’t cancel my benefits otherwise) do I get the right to contribute to the full 2023 HSA contribution limit or do I need to pay attention to reduce the amount by a certain amount which comes from the time I had an HRA (lets say 1 month/31 days).
I want to thank you again for the direct, fast and helpful help.
