My HSA custodian (HealthEquity) does not have a form or process in place to calculate and return earnings (interest + investment gains) on mistaken/excess contribution. I’ve tried to ask them to calculate and return the earnings based on my mistaken HSA contribution form I submitted. They returned the mistaken contribution to me but not the associated earnings.
so I asked them why that hasn’t happened and then they said I’m supposed to calculate the earnings and use the same HSA Mistaken Contribution Form to submit the earnings amount.
so I used the NIA formula by IRS and submitted a request to withdraw the earnings. Now they’re now saying they can’t return my earnings because I’ve already withdrawn the contribution excess (which earnings is beyond that) and that they don’t have the form for just earnings on mistaken contributions. Basically, they’re refusing to return the earnings on mistaken/excess contributions.
what happens when an HSA custodian refuses to return the earnings on mistaken contribution? What would happen for my tax filing? Anything I can do to correct things on my end so I don’t get penalized?
