I'll see if this makes sense. In 2021 after completing open enrollment in 2020 I was covered under a HD insurance plan. I open a HSA with my employer, and they contributed funds per pay cycle. At the end of the year, I had a remaining bal of $101. During the 2022 open enrollment was told I could not participate in a HD insurance plan as I was turning 66 in Jan 2022, and that I could retain my HSA. So during the year of 2022, I contributed funds per pay cycle. I used the funds accumulated in 2022 for medical expenses. I thought of adding funds in the HSA to take advantage of any tax deferments to save on my tax burden. I found after TT software informed me that since I have a pension plan via my company, I cannot contribute to HSA. Then found out that since I don't have a family HD insurance plan, I can't or wasn't suppose to contribute fund, but the HSA bank bi-weekly took funds to apply to HSA. So I have a remaining balance in the HSA, I can't contribute, and I wonder if there will be some type of penalty or should I just remove the funds and close the account. I was hoping to roll over some IRA funds to the HSA to make the funds tax free and apply to future medical expenses.
