Thank you @BillM223
A couple follow-ups if I may.... the overfunding was a result of employer reimbursement. If the excess funds are removed, who gets the money.... the individual who had the overfunding (J in this case), or does it go back to the employer? Its sounds like J correct? And would the 1099-Misc be for 2022 taxes or 2023?
Also, if I answer TT and say that the excess will not be removed, TT adds in a 6% penalty. This seems like it would be significantly less that receiving a 1099-Misc and paying tax on $3550 since they are in a high tax bracket. Is that legit?
