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No, it is not advantageous to have HSA at this point. In fact, you are being penalized (the extra 6%) by making HSA contributions. The HSA can be established only in conjunction with a High Deductible Health Plan (HDHP) and the contributions can only be made when having HDHP.
You will pay a 6% excise tax on excess contributions (that's what they are called once the contributions are not allowed) each tax year the excess contribution remains in the account. You should withdraw your contributions.
Per IRS: (page 7) : You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.
You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made.
You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings.
Related to this question but slightly different, what if you I have an existing HSA plan with valid contributions in past years, but this current year I elected to NOT have a HDHP? Since I do not have an HDHP for the current year and I know not to make any a contribution, is there any issue with just USING HSA funds from my preexisting account?
No,there is not any issue with using the HSA funds in years when you are not eligible to make contributions or when you aren't covered by a high deductible health plan (HDHP).
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