I overfunded my HSA for tax year 2023 and found out in 2024 while filing tax. I withdrew it before 4/15/24 to avoid the penalty. However, I accidentally withdrew it as normal distribution and my 1099-SA is not correct now. When contacted my HSA account manager, they insisted I had to return the money to HSA account then withdraw it correctly. This for sure is not going to be done 4/15/25 and I am afraid that I will have to pay tax again for $3650 that I already paid in 2024, on top of 6% penalty. What’s is the best way to correct this?
