Absolutely. Here is the link. Also, the name "Mistaken Distribution" is just the name for any HSA distribution that was taken, but not qualified. You would be penalized if you do not correct the HSA because you have taken a tax advantage that you did not qualify for. The penalty is a determent strategy to discourage those actions.
You are correct nothing has been done improperly as long as you reconcile the HSA with the reimbursement.
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