Employer contributed to HSA when not enrolled in HDHP

[Peachtea]

In 2021 DH and I were on separate HDHP plans and each contributed to our own HSAs. I was pregnant and due in January 2022, and we knew the baby tipped the scale in favor of a family plan. So during open enrollment for 2022, DH opted out of his employer plan and submitted a form to cancel his HSA contributions for 2022. I enrolled in a HDHP family plan through my employer and I am contributing to my HSA to max out the allowed family contribution (minus my employers contribution).

I gave birth before DH had his first paycheck. With the new baby he forgot to check his payroll to confirm the changes. In April I did our taxes and logged into our HSA accounts. I noticed that while his employer stopped his contributions, the employer was still contributing $50 a pay period to his HSA. He then checked his payroll statement and realized the employer was still deducting the $25 ish a pay period for HDHP premium he opted out of, as well as contributing to the HSA. His office manager (HR) confirmed that he wasn't enrolled in their HDHP but she had forgot to change the premium deduction and employer contribution. She was basically like well you came out ahead $140. She stopped the premium deduction and employer contribution but doesn't intend to do anything about the January - March mistake.

My question is can I just lower my contribution to my HSA so that the total amount contributed is within the amount allowed for a family. Or do we need to do something/insist his employer does something about them having contributed to DH's HSA when he wasn't on an HDHP through them?

[Tigerpine]

Here's what the IRS has to say.

My take on it is you should be ok as long as the overall contributions are within the $7,200 limit.  I think the question boils down to whether or not you're a "qualified individual".

An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual’s return whether or not the individual itemizes deductions. Employer contributions aren’t included in income.

Qualifying for an HSA Contribution
To be an eligible individual and qualify for an HSA contribution, you must meet the following requirements.

You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
You have no other health coverage except what is permitted under Other health coverage, later.
You aren’t enrolled in Medicare.
You can’t be claimed as a dependent on someone else’s 2021 tax return.

Rules for married people. If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. If each spouse has family coverage under a separate plan, the contribution limit for 2021 is $7,200. You must reduce the limit on contributions, before taking into account any additional contributions, by the amount contributed to both spouses’ Archer MSAs. After that reduction, the contribution limit is split equally between the spouses unless you agree on a different division.
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Caution:  The rules for married people apply only if both spouses are eligible individuals.

[Peachtea]

Here's what the IRS has to say.

My take on it is you should be ok as long as the overall contributions are within the $7,200 limit.  I think the question boils down to whether or not you're a "qualified individual".

An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual’s return whether or not the individual itemizes deductions. Employer contributions aren’t included in income.

Qualifying for an HSA Contribution
To be an eligible individual and qualify for an HSA contribution, you must meet the following requirements.

You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
You have no other health coverage except what is permitted under Other health coverage, later.
You aren’t enrolled in Medicare.
You can’t be claimed as a dependent on someone else’s 2021 tax return.

Rules for married people. If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. If each spouse has family coverage under a separate plan, the contribution limit for 2021 is $7,200. You must reduce the limit on contributions, before taking into account any additional contributions, by the amount contributed to both spouses’ Archer MSAs. After that reduction, the contribution limit is split equally between the spouses unless you agree on a different division.
.
Caution:  The rules for married people apply only if both spouses are eligible individuals.

Thank you so much! This makes me feel much more confident to just reduce my contributions.