I was laid-off from my job in early Feb., 2016 and received a severance package from my employer for 12 months that included an HSA account (which I’ll refer to as Company HSA #1). In Nov. 2016, during the “healthcare open enrollment period,” my employer announced a change in HSA providers for 2017 (which I’ll refer to as Company HSA #2).

As we transitioned into 2017, I had fully distributed my funds from HSA #1 and began to accumulate contributions into my new HSA # 2. In short, I had two open HSA accounts at the beginning of this year.

I decided to disburse my funds completely from HSA # 2 and close the account, and retain HSA # 1 for the remainder of 2017. I retained HSA # 1 because it had features more advantageous to me than HSA # 2.

After my severance ended in early Feb., 2017, I elected a COBRA for my high deductible heath care plan, determined how much had been contributed to it by my employer prior to my severance ending in early Feb. of this year. Because your company’s guidance had been that I could make a one time distribution from my TIRA to fund an HSA, I did so. The method I used was to determine the maximum amount an HSA could be funded in 2017, subtracted from that the amount that HSA # 2 was funded through early February, and used the difference between the two to fund HSA # 1 with it. After performing that distribution, I closed HSA # 2, which had a balance of $0.

Today, I learned that unbeknownst to me, the bank for HSA # 2 reopened my account because my employer needed to make another contribution to it. This has now caused the maximum amount of funds that were contributed in 2017 for both HSA # 1 and HSA # 2 to EXCEED the maximum allowable 2017 annual HSA contribution.

I am at a loss at how, if at all, I can correct the HSA contribution overage without encountering an IRS penalty in 2017 for a situation where I closed account, HSA # 2, but that was subsequently reopened without my knowledge to receive my employer’s additional contribution.

What are your thoughts on the matter?