I appreciate your feedback. As I figure out how best to correct the situation, I start to realize how deep of a rabbit hole this can be. After talking to the HSA admin and the benefits people at my employer's, I now have a better idea of what will happen, which leads me to ask:
1. I can withdraw $2500 from my current HSA and leave $500 (the value of my old HSA, which has been spent on medical expenses) behind, which I'll pay the 6%. From what I can gather, I'll keep paying the 6% forever unless I withdraw it. Given that the $500 is a 2022 contribution to a HSA that is linked to a job that I am no longer at, what are my options to resolve it permanently?
2. The full $3000 has been added to my 2022 income and I'll be paying ordinary income tax rates on it. When I withdraw $2500 from my current HSA, do I get tax on the $2500 in 2023, even though I have already been taxed on it in 2022 and the distribution was made to correct a mistake?
Thanks very much!
