There are rules for putting money into and talking money out of an HSA. I encourage you to read IRS Pub 969 to familiarize with the HSA rule, at least (there are other financial accounts in there, so don't get them confused). This is not written with the user in mind, so I encourage you to nose around the Internet looking for user-friendly descriptions if how to use an HSA.
The HSA custodian is a specialized unit of a company like Fidelity, that abides by the IRS rules in handling the HSA dollars. It is different from a brokerage account.
Yes, you should have contact Fidelity and asked for the "withdrawal of excess contributions". In fact, Fidelity likely has a form on their website so you can do this "self-service". This would get your money back, but the HSA custodian would have their paperwork done correctly.
OK, we have a few days to fix this. First, you need to contact Fidelity and tell them that the withdrawal for this $400 was a "Mistaken Distribution". Fidelity will want you to complete a form (also maybe online) and have you send the $400 back. Be nice when you ask, because they don't have to do this.
Then tell them that you want to request the "withdrawal of excess contributions". You MUST do this before April 15th, so get started on it now. Fidelity will ask you to complete different paperwork and will send you the $400 plus any earnings that the $400 earned while it was in the HSA.
Then you will receive a 1099-SA with the distribution code of 2 in box 3. Box 1 will probably have the $400 in it, but as I explained above, this is ignored by TurboTax. The amount in box 2 - the earnings - will be added to your income - in 2024.
Yes, this 1099-SA is for you 2024 return, i.e., next year.
Happy studying...
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