HSA account closed- how to transfer money

[rockyr9]

My HSA account was closed by bank for inactivity. Unfortunately they have been sending all the communications to my closed account and they put my account as "Account Escheated". When I contacted my bank they sent me the check of remaining balance. Now I don't know what to do with this remaining balance to avoid the penalty.

I've HDHP plan through my spouse who has a HSA account under her name. My question is that if I can transfer my check to her HSA account and if that will help me in avoiding penalty. If yes, how can I do it? Should I deposit check to my checking account, and then transfer money to my spouse's HSA account? Would that work? 

[dmertz · Accepted solution]

No, you are not permitted to deposit the money into your spouse's HSA.

To avoid the distribution from you old HSA being a distribution subject to tax and likely early-distribution penalty you must either apply the distribution to qualified medical expenses or open a new HSA in your name and within 60 days of receipt deposit the money into the new account as a rollover contribution.

[rockyr9]

Thanks for your response. However I am currently enrolled under my spouse's health insurance plan. Can I still open an HSA account in my name? Looking online it says, I should have my own HDHP in order to have an HSA account.  

[dmertz]

Any individual can open an HSA to receive an eligible rollover from another of that individual's HSAs.

[Critter]

Correct ... you open the account to receive the rollover NOT to make new contributions which you are referring to in the post.  They are NOT the same thing.