When you say to withdraw the 2023 excess, how can I do that? The HSA custodian (Fidelity) seems to have only two relevant options for withdrawals:
1. Return of excess contribution form, which I cannot use because the contribution was from too long ago (2022). I confirmed it with them multiple times.
2. Normal distributions, which would generate the kind of 1099-SA that I received for my March 2023 withdrawal, with distribution code 1.
The custodian is telling me that my tax advisor should be able to sort this out with the IRS and are not offering any alternatives. If those are the only two tools they have available and I have to do a withdrawal anyway and receive a 1099-SA with distribution code 1, can I take that 1099-SA that I received and treat it as two separate 1099-SA forms?:
1. Return of excess contribution ($90: Not $100 because there is a $10 loss on the HSA from Jan 2022 to March 2023).
2. Normal distribution ($10) that I will apply against medical expenses.
... and be done with it? IRS will see a mismatch in what I filed and what the custodian reported because all they got was a 1099-SA showing a $100 distribution, but there has to be a way to explain that to them (if asked or audited, or even proactively) since the custodian isn't offering me any other options.
