I have an old HSA through a previous employer that was doing nothing but incurring large monthly fees. We recently opened a new HSA through my wife's employer. I erroneously believed that I could rollover my old HSA funds to her custodian, and thus closed my old account. However, I now understand that I cannot simply "rollover" these funds to her account since HSAs are tracked by SSN.
So now I have a check made out to me and I want to ensure that I do not have to recognize these funds as income nor pay the 20% penalty. I COULD go back through our bills and see if we have enough medical bills to soak up these funds, but that would be time-consuming.
Would it simply be permissible to cash this check and then contribute an identical amount to my wife's HSA? I cannot find any guidance on whether contributions to a different HSA constitute "qualified medical expenses" for which one can spend HSA distributions. Any guidance is appreciated!
