I was hoping and expecting you to chime in as I have seen your other posts, I am not disagree with your assertions except that the IRS in black and white says,
"The maximum qualified HSA funding distribution depends
on the HDHP coverage (self-only or family) you have on the first day of the month in which the contribution is made and your age as of the end of the tax year. The distribution must be made directly by the trustee of the IRA to the trustee of the HSA. The distribution isn’t included in your income, isn’t deductible, and reduces the amount that can be contributed to your HSA. The qualified HSA funding distribution is shown on Form 8889 for the year in which the distribution is made.
You can make only one qualified HSA funding distribution
during your lifetime." Pub. 969, pg 6 2017 Version.
Thus, it should be possible to make a taxable distribution non-taxable by putting it into a HSA. Your comment that it is better to reduce the TP AGI by making a after tax distribution separately is well-taken, but beyond my mathematical skill-set.
I do hope that you will comment on my other post relating to IRA to HSA and comment and also perhaps document your position (IRA straight to HSA versus IRA to taxable distribution, then to deductible HSA) with a simple example.
I look forward to it and thank you. Your's Truly, Snake.
