I started out 2012 covered by my employers High Deductible Health Plan. On November 1, the plan changed to a non HSA eligible plan.
I did not use my employers HSA account service because they had a $5.95/month fee. Instead, I made after tax contributions on my own to a low fee HSA account for January & February. Near the end of February I discovered my employer's accounting person was willing to make a pretax contribution to my HSA account but she wanted to limit the number of transactions. So in March 2012, I had her deposit 10 months worth of pretax HSA contributions, figuring that (added to my January & February contributions) would take care of the rest of 2012.
On November 1, my employer's health plan changed to a non HSA eligible plan. By that time I had forgotten about the 12 months of already made contributions.
After reading the IRS instructions and a few websites, I'm looking for confirmation and/or info on the following:
1. Since I was not covered by an HSA on December 1, 2012, I am not eligible for the max 2012 contribution; instead, as I had HDHP coverage for 10 of the 12 months of 2012, I'm eligible for 10/12 of the max.
2. Since I over contributed, I do an "Excess contribution withdrawal" as long as I complete it before 4/15/13 (tax reporting deadline). The HSA account administrator withdraws both the excess contribution and the interest earned on that.
3. I hope this is not a last in, last out situation. It would be perfect if I could just reverse the two months of after tax contributions I made in January & February 2012. Once I've completed the "Excess contribution withdrawal," even though that transaction will happen in 2013, it is like the over contribution (which is equal to my after tax January and February contribution) never happened. What I don't understand is what I report on form 5498-SA. Can I report only my employer pretax contributions in the top box, and report $0 on line 2 (as the net of my own, now reversed, after tax contribution will be $0 after the "excess contribution withdrawal."
4. Will I have any penalties on this mess?