@dmertzThank you for the quick response and thorough explanations.
To answer a couple of your questions and alternative approaches ...
Original post-COBRA health insurance plans (ie ACA HDHP) lent itself to an opportunity to use the one-time HFD option so figured what the heck, vs out-of-pocket. Seemed like a good thing to do especially given zero contributions had been made in 2023.
Already called and submitted form to HSA company. Their policy if its a "post-tax" excess contribution to use their RETURN OF MISTAKEN CONTRIBUTION Form. Apparently their DIST OF EXCESS CONTRIBUTION Form is for a valid "pre-tax" excess contribution. Given my situation shifted from "pre-tax" to "post-tax" due to failing the test period, that made sense. They also, according to the Member Service Rep talked to, will adjust for the appropriate interest to the excess so I will not have to do the math.
Noted your other possible scenarios to handle the excess, but agree a return is the simplest and cleanest. That way I do not have to continually track it for years to come. Applying it to another tax year would probably have been a good solution but again, no idea when/if I will get back to an HDHP, so return of excess is best.
After reading several other related posts ... figured DMERTZ might be the expert that responded!
Thank you,
LGinMO
