In 2019, I moved maximum amount (over 55) from what appears to be an Inherited Traditional IRA (although thought they were taking from SEP-IRA) to a HSA. The brokerage house (correctly it seems to me) withheld taxes on roughly half of the gross distribution, which is logical because the Code permits a once in a lifetime funding of an HSA from an IRA that is not subject to taxation. (See, IRS Publication 969)
The transfer went from trustee to trustee and did not touch my sullied hands.
My problem is that turbo-tax seems to have a hiccup when I phrase it as a transfer from my Inherited IRA versus my SEP-IRA, to the HSA. Two different issues seem to be happening: 1) If I phrase it as from my SEP/IRA to my HSA my AGI decreases more favorable compared to Inherited IRA to HSA; and, 2) amounts seem like they need to be "manually entered" on 1099R and 8889-T and possibly elsewhere within turbo-tax.
Am I missing something? Seems like the program is skewed against Inherited IRA once in a lifetime contributions to HSA versus SEP Traditional IRA contributions to HSA and this ain't in the book. Please share your thoughts. Your's truly, Snake.
