Yes, you answer YES to the overfund question, and enter the carryover amount on the next screen.
Note that as you have now seen, you can't withdraw a prior year excess (only the current year excess, if any). You can correct a prior year carryover in one of two ways:
1. use the carryover as a personal contribution in the current year (which may call for a reduction in your customary HSA contributions). Note that carryover is on line 2 (8889) (and may be added to any current year personal contributions).
2. take a distribution and not spend it on medical expenses - this will be added to your income and you will also be penalized and additional 20%.
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