DaveF1006
Expert Alumni

Get your taxes done using TurboTax

I would report the contribution for this year as a contribution because if it is withdrawn in 2023, you will probably be issued a 1099 SA for 2023 that reports the distribution. You will be taxed since it was not used for medical expenses.

 

You may as well receive a deduction for the contribution this year because you will be taxed on the distribution on your 2023 return. 

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