Account management fees are equivalent to an investment loss that simply reduces the balance in the account. It is not a reportable distribution.
TurboTax will ask for the year-end balance in your HSA. If the account was closed in 2022, your year-end balance in the HSA was $0, otherwise the year-end value is whatever is shown on your year-end statement from the HSA or in box 5 of the 2022 Form 5498-SA from the HSA. The excess-contribution penalty will be 6% of the lesser of the excess contribution or the year-end balance. If the excess contribution was only $20, the penalty will be no more than $2 ($1.60 rounded to the nearest dollar).
