If the distribution occurred after October 17, 2022, the HSA custodian made a mistake by processing this as a return of excess contribution (unless they thought were processing a return of a contribution made for 2022). For a regular distribution after October 17, 2022 to resolve an excess HSA contribution made for 2021 should have code 1. Contact the HSA custodian to have them correct the code-2 Form 1099-SA to show $0 and obtain a new Form 1099-R reporting the distribution with code 1.
