Thanks. Looks like I missed doing that while withdrawing and did a regular withdrawal. And thank you for the detailed solution, although it looks pretty complicated to me.
By the way, if I just report in turbotax for year 2023 with code 1 only (which is what I got in 1099 SA), does that mean, I have to pay tax + penalty when I mark it as "it was not for medical expenses.". This essentially means, I paid taxes twice + penalty, right?
I just feel given the amount is small, it is okay to just do this and get done with that. I guess then going forward, I don't need to worry about it. Is that right? And from IRS point of view, I think they should be fine, given I am paying taxes again.
