If you think you should be taking a distribution in December 2024 not for medical expenses in order to cut off the excess from 2023, then, yes, the 1099-SA should have in box 1 the total distribution, box 2 might as well have nothing, and box 3 should have "1".
You understand that any time that you change entries on a form that is copied to the IRS, that the IRS may write you can ask why, but it seems that you understand that you will have to document what you did and why. Please do not add any explanation to your return, since the IRS - at this time anyway - is not really capable of handling such things. It's enough that you will be prepared to respond to a query, if that ever happens.
And yes, I am ignoring the $0.78. In the big scheme of things, your distribution added to Other Income and the 20% penalty, will swamp any need to address that.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
