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I definitely understand what you're saying about reporting it the first way, and I do agree that that would be a better way to report it. 

On one of the brochures for UHC Motion, it says:

"Balance transfers: Once each quarter, members' earnings are transferred to their HSAs. Earnings distribution: Think of the quarterly transfers as their distributions."

I think this means, as you said, that I should treat it like my own contribution? The use of "distribution" there confuses me. I have attached the full page for review.