"When I went to remove the cash I first had to fund the portion already reimbursed."
Are you saying that you made payments for medical expenses from your HSA, then found out you needed to withdraw the excess? What do you mean "I...had to fund the portion"? Did you put even MORE money into the HSA, just so you could withdraw it?
What should have happened is this:
1. If you had used your HSA to pay for things, you should have contacted your HSA custodian to report a "Mistaken Distribution". You would have signed a form and sent the custodian a check for the amount of the distribution.
The problem is that if you just sent the HSA custodian a check to put enough cash in the HSA to withdraw, then the HSA custodian's paperwork will be all fouled up, because it will look like you contributed that money twice.
If you are not eligible to contribute, then you can't willy-nilly put money in. That's because the HSA is not a simple savings account that you can take money in or out as you please.
So please tell me what you did and clarify what you said.
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