No, do not amend your 2024 taxes.
When you receive the 1099-SA for the withdrawal of the $429 (plus any interest) and enter it in your 2025 return, then several things will happen:
The following assumes that you actually withdrew the $429 Additional Income (line 18 and 20 on the 8889) and received a 1099-SA for this amount with a distribution code of 1, as opposed to just rolling it over to 2025.
- The amount of the distribution (line 1) is added to your 2025 income
- The amount on line 20 (8889) (Last-month rule income on line 18 (8889)) is multiplied by 10%, which is also added to 2025 income
- The amount of the carryover less than or equal to this distribution is canceled and will no longer carry over to the subsequent year.
That is, there is nothing that you have to enter to cause this to happen, other than entering the 1099-SA for $429 with a distribution code of 1 on your 2025 return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
