To clarify:
- He did not have an HDHP in 2023 (therein lies the problem). He was out of the HDHP at the end of 2021, beginning a new plan 1/1/2022 onward that is not an HDHP.
- No contributions were made to his HSA by him directly or by his employer in 2022.
- The only contribution made to his HSA in 2023 was the $13 by him directly to ‘fix’ the overdraft. (Yes, he SHOULD have paid the $1.92 from his checking to the medical biller directly, not to the HSA.)
- The $118.02 mentioned below was his HSA carryover balance from yearend 2022, noted as the fair market value on his 2022 5498-SA, which also noted $0 total contributions.
- The 2023 5498-SA notes $13 in the contribution box & $11.08 in fair market value.
- Part I of his 2023 Form 8889 just has $13 on line 2. As stated, he didn’t check a box on Line 1, because he didn’t have an HDHP. Lines 3-13 are zeros.
Hope that helps.
