I established and funded with after-tax dollars an HSA in 2021. I became eligible for and enrolled in Medicare on 7/1/2021 so I only contributed half the permitted annual amount. I was on a HDHP in the first half of the year. My 2021 after-tax HSA contribution is showing up on form 8889 as a Qualified HSA funding distribution. I took no distribution from the HSA in 2021.
Why does TT put my HSA contribution on line 19 of form 8889 as a qualified HSA funding distribution? TT did put zero on line 10 for qualified HSA distributions.
Why am I being penalized for failing to maintain a HDHP?
