Thank you for your reply. The spend down approach is definitely an approach that I have been considering. The account has about $10K in it so that will take some time. The time required is an issue and from what I have read, the tax issue with the IRS does not really go away. They may not be pursuing taxpayers on this issue though. My HSA Manager has state that they can no longer calculate the gain and I will need to take a non-qualified distribution of the Excess Amount. I would need to establish the resulting gain on my own. So I'm moving toward the approach of taking the $296 excess contribution plus the gain amount as a distribution. My approach would then be to add an additional amount of money in the requested distribution to ensure compete coverage. Taking an additional amount is no big deal. Does this approach allow the problem to be closed, or are there other issues that I'm not seeing? I have not used the account so this minimizes the complexity of problem. I cannot exercise any of the typical options cited throughout the internet, because I have retired and am on Medicare. My one concern is the non-qualified distribution would not be directly associated with the Excess Contribution but the accounting may consider it a fix. Thx
