"No special reporting" means report it as a regular distribution. That means use code 1 or code 7.
Code G is only for reporting a direct rollover. An HSA Funding Distribution is not a direct rollover. The tax code defines a direct rollover as a a distribution to or from a qualified retirement plan (a 401(k), 403(b), 457(b) or the federal TSP) paid directly to the receiving account. Neither an IRA nor an HSA is a qualified retirement plan as defined in the tax code, so code G is not permitted to be used for reporting an HFD.
