1 - The $500 was an employer contribution toward a full year of coverage... so I guess technically it was for Dec 2021 through Nov 2022. She no longer has access to documentation to confirm the dates of coverage of the HDHP or HSA contributions. But, her W2 from 2021 included the $500 employer contribution for sure.
2 - She believes it was effective December 1st 2021 but again isn't covered under this plan any longer and doesn't have documentation. Is the start date still relevant since the $500 from her employer was for more than just December 2021.
3 - Yes, distributed through normal distributions as indicated on her 1099-SA for 2022.
Am I correct that she won't have to pay the 6% penalty since all is withdrawn and I should select the option in TT that says all funds will be removed by April 18th?
Also, am I correct that she will pay 20% (for taxes not previously paid) on the excess amount applied in 2022?
Last, should the cost for December 2021 be eliminated somehow since the $500 was not all for Dec 2021? If so, how do I accomplish that in TT Deluxe when it automatically calculates it?
Thank you again!
