Thank you so much for the solutions. You are AWESOME! I am leaning the third alternative: my HSA custodian already asked me to mail a check back with the distribution as a Mistaken Distribution so that part is taken care of. She suggested to remove excessive distribution as a second step but I prefer your suggestion of taking 6% ding but carry that to 2025 HSA (I am making sure my contribution doesn’t exceed limit with the carryover this time). But my question is, the excessive contribution was from 2023, not 2024 - would it be any problem to carry that in to 2025?
