I have decided to continue working into 2020 in order to cover my wife (who has worked at the same company, and is not yet Medicare age) through the group HDHP plan. There are now no other coverage options offered. The company makes a beginning of the year contribution to an HSA in my name (I already have an HSA but stopped contributions this year), of $1100 to help with the deductible. I have already filed for Medicare A & B. I am told there is no other option for payment of the $1100 (such as FSA, even though I could contribute to an FSA they can't direct the $1100 to the FSA).
1. What penalty will I incur? Further, how is the penalty calculated?
2. Is there any known way of avoiding the penalty?
