Thank you for the info. So just to be sure I am clear ill use my actual numbers:
I had an excess contribution of $2887 for tax year 2023. This excess earned (based on my best attempt at the calculation) $1,590.
Therefore I should be withdrawing $4,477 from the HSA immediately, with reason of "excess contribution".
On my 2023 taxes, turbo tax will only show that this 2887 as "excess employer contribution withdrawn", and nothing in the category of "taxable earnings on excess contributions". Then, I should receive a 1099-SA from HSA custodian for tax year 2024 that shows $4,477 in box 1 for total distribution, $1,590 in box 2 for earnings on excess contributions, and a distribution code of 2 in box 3. At which time when filing for 2024, turbo tax will prompt me about what to do with the earnings?
