In 2019, I had HDHP insurance from March onwards. But, I started a HSA account in June 2019 through my employer. Since I had HDHP insurance throughout the year, I contributed $3500 for 2019 through employer contributions from payroll deductions. I left the employer in June 2020. Hence, I did not remain an eligible individual during my testing period (December 1, 2019 to December 31, 2020).
So, in order to withdraw my excess contributions of 2019, I requested the HSA trustee financial institution to withdraw the excess amount from my HSA account in July 2020. However, I made a mistake in this excess amount calculation. Instead of calculating excess amount for just 2 months of 2019 since I started with HDHP account in March 2019, I calculated it for 5 months since I saw that my HSA was opened in June 2019. The HSA trustee sent me the check for $1458.33 (=(5/12)*$3500) and filed a 1099-SA which indicated this amount as Excess Contribution. Since then, I have rolled over my HSA account to another new trustee and closed the account with the old trustee.
So, when I contacted the original HSA trustee regarding this mistake, they said they won't be able to do any changes from their end like generating corrected 1099-SA since I do not have an account with them. I am not sure how I show the $1458.33 in my tax return.
1) The actual excess contribution was $583.33. Does this mean I have to show the remaining $875 as distribution from HSA? But, the 1099-SA that the old HSA trustee sent me indicates clearly that $1458.33 was "Excess Contribution". So, can I by myself declare $583.33 as excess contribution and $875 as "Normal distribution" without any 1099-SA to show for it? I do have medical expenses for this amount in 2019-2020. But, I paid those expenses myself. Do the expenses have to be exactly $875? Or could they be more? Do I need to include any of these expenses or bills in my tax return?
OR
2) Could I just include the 1099-SA details as $1458.33 by adding a 1099-SA in TurboTax when it asks for them? And then just mention that I had HSA since March 2019 and let $583.33 (automatically calculated by Turbotax) be the excess amount as automatically calculated by Turbotax? Should I do both of these or do only 1 of these? Is $875 considered a distribution?
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3) Could I just contribute the $875 difference back to my HSA with the new trustee since tax return due date is May 17 now? Could contribute back even if I am not under HDHP insurance now since it is just returning the mistake amount of excess contribution?
