I did a one-time $7000 direct transfer from IRA to previously existing HSA (like rollover) in May 2019. I haven't used any of it. I just learned that I am/was no longer eligible for HSA contributions since we no longer had an HDHP in any of 2019. No problem with income tax, but is there a way to avoid the 10% penalty? Somehow reverse the transfer at this point? Withdraw the balance and close the HSA?
