I think the answer to my question lies in the content of one of the forms you attached (thank you):
"I understand that by completing this form, the contribution(s) will be reversed from my account if the account has a sufficient balance, and that the contribution(s) will not be included on tax reports if the error occurred this year."
"If the error occurred last year, I understand that I may receive corrected tax forms and that I should consult with a tax advisor."
They simply do not send a form 1099SA or send a corrected form where they zero out the distribution (my interpretation). If they remove the 1099SA amount, then it is as if the distribution never happened.
I will call them again. Thank you!
