Bill -
Thank you so much for your reply, it is appreciated. Let me answer some of your questions/assumptions and perhaps you might be able to enlighten me.
Yes the distribution from the Inherited IRA was more than the HSA Qualified Funding Distribution (QFD). So, the brokerage reported a gross distribution of $9,100, moved $4,500 to HSA and withheld tax on the remainder of $4,600.
However, at least in easy step, Turbotax keeps showing the entire $9,100 as 1099-R income. (I can get a different result in "forms" approach but that is when I treat IRA as my own, and stupidly I never made this conversion within 5 years)
Yes. The SEP/IRA was not ongoing as I (as self-employed) have not made contributions to it in many years.
Thus, as it stands now, I can get a partially correct result if I "imagine" that $2,500 came from the SEP/IRA (the amount of the distribution), and the other $2,000 originated from the Inherited IRA. However, would prefer not to do this, especially since it still shows the entire $9,100 as income.
Long story short, I cannot seem to get turbotax to recognize that almost half of the gross distribution from the Inherited/IRA went to the HSA.
Any guidance or suggestions you might have would be greatly appreciated. I need to get this right because I am bumping up to another threshold - repayment of APTC.
Finally, I am 64, and thus $4,500 HSA contribution (QFD) was correct and really want to grow my HSA as much as possible prior to next year.
I have tried to explain this as simply as possible. If you need more information feel free to ask. Looking forward to hearing from you.
Yours Truly,
SNAKE
