The $800 and the $188 of attributable earnings will both be removed. Because the $800 was from a personal contribution, not made through your employer, this $800 will not be included on your Schedule 1 HSA deduction. The $188, that is required to be distributed will be taxable on your 2021 tax return when next year you enter the code 2 2021 Form 1099-R into 2021 TurboTax.
