Let's try this:
1. You'll need to calculate the earnings on the excess while in the HSA. If there was anyone friendly at the HSA custodian, you could ask them to calculate it even if they can't do a withdrawal for 2022 any longer (And, no, no HSA custodian would do what you would like about the recoding). If you can't get it from the HSA custodian, you can go to this link which describes how to calculate earnings on excess IRA contributions (the calculation is the same for HSAs).
2. Now for your 2023 tax return, get into your HSA interview. When you are asked if you overfunded your HSA in 2022, answer YES, then enter on the next screen the amount of your excess (the $100).
3. Depending on your other entries, TurboTax might calculate excess contributions for you this year. If so, you won't be able to withdraw the excess from 2022 (the overfund amount that you entered), just the 2023 excess. Do so.
4. On the other hand, if there is room under your annual HSA contribution limit for 2023, the excess from 2022 will be applied to your 2023 limit as a personal contribution, and "used up". This will get rid of the excess carryover.
5. Go to Wages & Income->Less Common Income->Miscellaneous Income->Other reportable income, and click on Start. Answer YES to did you receive any taxable income. On the next screen, enter the description of "earnings from excess HSA contributions" and then the earnings from step #1.
6. You still have a 1099-SA from early 2023 for $100 miscoded as a normal distribution. Do you have $100 (or more) in current medical bills not reimbursed from the HSA, or perhaps will you have $100 or more in medical bills in the near future? In the latter case pay them from the $100 in your checking account, and only the rest of the bill (in excess of $100) from your HSA.
7. If you can apply the $100 to any recent or new medical bills, then just marked it as not for qualified medical expenses, which will add the $100 to income as well as impose a 20% penalty.
8. Document everything you did and keep it in your tax files in case any one ever asks. The point is that you need to show that you tries to take corrective action, even when the rules by the IRS for doing so are not very clear.
9. If you do all this, you should have purged your HSA of excess contributions and declared the earnings as income, and you should be back to where you started with your HSA.
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