My husband has had a HDHC family plan at work for several years with a HSA. Beginning January 3, I got my own family coverage through my employer. On Feb 1, he dropped his coverage to single through his work, but was double covered by me because there was no extra cost to do so, and my coverage was better.
Through our own ignorance, we didn't realize this made him ineligible for contributing to a HSA. He has nearly a year of contributions.
I can figure out what to do for his HSA, as far as submitting an excessive contributions form and taking out the money that has been contributed. Near as I can tell, because he had family coverage and was eligible for an HSA on January 1, we take the total contributions ($3000) for the year and subtract 1/12 of the max he could contribute for family (562.50), minus a small amount for interest earned, and pay taxes on that as earned income. Is that correct?
Our biggest problem is this: On January 1 my husband's health insurance carrier instituted an exercise incentive program that, with the help of a tracker, paid a max of $3 per day for meeting certain exercise milestones. This money was deposited into a different HSA account. My husband has used some of this money. I spoke to this bank today, and the money is showing as "employer contribution." I have no idea what to do! She said to contact his employer and have them withdraw the funds. I'm pretty sure the money came from the insurance company. Will the insurance provider do this? What about the money he has spent on medical expenses? Can we pay this back in some way?
Through our own ignorance, we didn't realize this made him ineligible for contributing to a HSA. He has nearly a year of contributions.
I can figure out what to do for his HSA, as far as submitting an excessive contributions form and taking out the money that has been contributed. Near as I can tell, because he had family coverage and was eligible for an HSA on January 1, we take the total contributions ($3000) for the year and subtract 1/12 of the max he could contribute for family (562.50), minus a small amount for interest earned, and pay taxes on that as earned income. Is that correct?
Our biggest problem is this: On January 1 my husband's health insurance carrier instituted an exercise incentive program that, with the help of a tracker, paid a max of $3 per day for meeting certain exercise milestones. This money was deposited into a different HSA account. My husband has used some of this money. I spoke to this bank today, and the money is showing as "employer contribution." I have no idea what to do! She said to contact his employer and have them withdraw the funds. I'm pretty sure the money came from the insurance company. Will the insurance provider do this? What about the money he has spent on medical expenses? Can we pay this back in some way?