As you can see, the $300 withdrawn in September 2023, continued to be carried over and dinged 6% because it was not withdrawn by April 15th, 2023. But that's OK, because the numbers you give in your last response show that you contributed $300 less than the max in 2023 (i.e., $300 less than the maximum annual HSA contribution limit), so this allowed the $300 carryover to be used as a "personal" contribution in 2024. That is, the carryover has been "used up" and completed.
See that line 48 on the 5329 is zero, meaning that you had no excess for 2023, and the excess from 2022 was used up, so you are done with carryovers.
This looks like the optimal outcome.
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