Custodian coded the 2024 1099-SA correctly as a "2" distribution.
IMHO TurboTax Premier lacks the ability to qualify the separate handling of 1099-SAs received that reflect compliance with the IRS publication.
Per IRS Publication #969
Excess contributions. You will have excess contributions if the contributions to your HSA for the year are
greater than the limits discussed earlier. Excess contributions aren’t deductible. Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the account.
You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.
• You withdraw the excess contributions by the due
date, including extensions, of your tax return for the
year the contributions were made.
• You withdraw any income earned on the withdrawn
contributions and include the earnings in “Other income” on your tax return for the year you withdraw the
contributions and earnings.
