Thanks for the reply.
Just a couple of notes:
1. The $860 excess contribution for 2021 was already withdrawn in 2022 even though it was after the filing deadline. I then amended my 2021 return at which time TurboTax charged me the associated income tax along with the 6% penalty on the $860. Just wanted to reiterate this, not sure I did the right thing.
2. The value in my HSA is fairly substantial and cannot be drawn down to $0.00 unless I have a catastrophic medical event this year.
3. What is my other option for fixing this? I believe I can take a non-qualified distribution of $860 from my HSA this year but in doing so, I believe I will incur a 20% additional penalty on my 2023 Tax return. What bothers me is that the $860 was already withdrawn and income tax and penalty were already paid. I hate to have to withdraw another $860. Not sure any of this is correct so I am eager to hear what options I have to fix this.
Regards,
Ketumm
