"Does it now make sense that there is no 5329? Am I now supposed to answer "no" I did not overfund my HSA because all the actions above resolved the 2020 situation? "
Everything is all right.
The TurboTax question, "Did you overfund your HSA in 20XX?" is misleading. That's because TurboTax actually wants to know if you carried over the excess to the next year, but you did not. So the right answer for you is "no", and because you did not, there should not be a 5329 on your return (well, at least for this, there or 9 other reasons to have one).
Just say "no" and move on.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
