I may have cornered myself with an excess HSA contribution.
I have a family plan HSA. No employer contribution. My wife has been on Medicare Part A from 2022. I have been on part A since July 2023. She had an HDHP for both of us during 2023 until Dec 2023 when she was laid off. She is only elligible for an HDHP on April 2024 (90 days freeze) in her new job to cover me. (Reason why we had to apply for Medicare Part B this month to avoid medicare penalties).
I made my one time contribution IRA to HSA towards year 2023 in January 2024 to cover my first 6 months of the year on HDHP when I was not on Medicare, thinking that was my last year to be able to do so.
However it appears that there are rules about keeping the HDHP for the next 12 months after the trustee to trustee transfer. There are also rules about medicare enrollement but I think I am clear on this, since I only contributed for the time allowed before my enrollment on July 2023.
My thinking is that we had HDHP for the entire year 2023, thus we have 12 months but I am not sure anymore. Can anyone help clarify? If i need to reverse this, how will that impact me taxwise?
Thanks
