January 2022: Employer made an excess contribution to my HSA of $100.
Feb 2023: Doing taxes and realized that it is an excess. Indicated in TurboTax that I will withdraw it before the deadline to avoid the excise tax.
March 2023: Withdrew $100, but I messed up. I withdrew it as a normal distribution instead of a return of excess contribution.
March 2024: Doing taxes and realized that the withdrawal was done wrong.
Now I have:
1. An excess contribution of $100 (+gains or -losses) from 2022.
2. Possible unpaid excise tax on the excess contribution for 2022 and/or 2023. Note that for 2022, I indicated in TurboTax that I would withdraw it before the deadline.
3. An early withdrawal of $100, plus any applicable penalties, in March 2023.
This would be easy if the HSA custodian would re-code the distribution from March 2023 as a withdrawal of excess, but they claim they cannot do anything about this since the original contribution was back in 2022.
I'd like to deal with the excess contribution to restore the HSA to a state where there is no excess, and undo any unnecessary early distributions done in 2023. Could someone point me to the tools available for this?
Thanks!
