I see the issue and my misunderstanding. The maximum amount one can contribute to an HSA is $7200 between 2 people if filing jointly, married. There is an additional $1000 FOR EACH PERSON OVER 55. So the max if both are over 55 is $9200. I thought that it was $1000 for both!
So when I did the original one time rollover of $8200 from my spouse's IRA to her HSA, it was wrong on 2 counts. $9200 is the max, and in addition, I did not understand that the requirement was that we had to stay in the HDCP for 12 months following the transfer. So when I tried to reverse the rollover to the spouse HSA, I withdrew the entire $8200. Turbotax does not understand why I withdrew the entire $8200 because it doesnt understand this 12 month rule. It doesnt think that the entire $8200 is ineligible, it thinks $333 is eligible for a HSA contribution. $333 is eligible for a HSA contribution for my spouse, but NOT as a IRA to HSA rollover because the rules for a IRA to HSA rollover are different than for a HSA contribution. Therein lies the issue. Turbotax cannot handle this, so I need to do this manually, GRRRR.
