What type of HDHP coverage did you have on December 1, 2020? If you had Family coverage, say "Family".
It is asking about the reason you stopped being eligible, because if you died or became disabled, it wouldn't have to ask you all the stuff it is going to ask you to see if you owe for failure to maintain HDHP coverage.
But in your case, it needs to ask you. The net effect of these questions is to find out what your annual HSA contribution limit would have been in 2020 if you had not used the last-month rule, and whether or not you exceeded that amount with your actual 2020 HSA contributions.
From what I can tell, you had HDHP coverage for all of 2020, so when TurboTax figures out your annual HSA contribution limit for 2020 (which would have been the same with or without the last-month rule), it will tell you that you don't owe anything extra, and that will be that.
I hope the HSA Funding Distribution also goes away with the HSA "reset" (what I call that series of steps to erase all your HSA data in your return).
@bill_s2
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