Thanks @BillM223 again. Yeah, it is indeed complex and confusing. I read your latest message several times 🙂
I'm trying to parse this text from your latest message:
Note: you will still get credit for the amount of the first transfer that was not excess as a contribution to the HSA, and you will still report the amount of the second transfer less the mistaken distribution as income and be penalized on it...but the amount of the penalty should be less.
- Does green text mean, it would go on 5498-SA as "contribution"?
- Does pink text mean, it would go on 1099-SA form as "normal distribution" (but non-qualified medical)?
