Terminated, problem with HSA company contribution

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Bcdkgf
Posts: 2
Joined: Sat Aug 01, 2020 9:43 am

Terminated, problem with HSA company contribution

Post by Bcdkgf » Sat Aug 01, 2020 10:13 am

My husband was terminated at the latter end of July from a very large corporation after over 40 years. He is in his upper 60's and was going to go over to Medicare this October when I turn 65 and I could go on Medicare. Well, we plan and God laughs. He did not contribute to his HSA this year because of the "free" Medicare Part A 6 month retro coverage. So his part A is now starting January. 7 minus 6 = 1 (January) The fly in the ointment, his company contributed $1,000 in January.

We subsequently moved this $1,000 amount into our Fidelity HSA in February and closed the Company's HSA (Anthem) account because we knew we would never use it again. The Personal Fidelity HSA account has several investments at Fidelity, mostly in money market accounts. I called Fidelity and they said to fill out a form and send it back to them.

Should we do this now or wait until income tax time next year. I wish He could have had a chance to say no to retroactive Part A. I really am at a loss here.

Thanks in advance.

Topic Author
Bcdkgf
Posts: 2
Joined: Sat Aug 01, 2020 9:43 am

Re: Terminated, problem with HSA company contribution

Post by Bcdkgf » Mon Aug 03, 2020 10:55 am

I may not have made my question clear enough. Should we fill out the Return of Excess Contribution Form now for the Company's $1,000 contribution in January. Or wait until tax time in early 2021?

Ace1
Posts: 248
Joined: Sun Dec 26, 2010 7:29 pm
Location: Twinsburg Ohio

Re: Terminated, problem with HSA company contribution

Post by Ace1 » Tue Aug 04, 2020 11:27 am

You might investigate if the company contribution can be classified as an HRA.
This is often available for employees on Medicare.

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