I had an excess contribution in 2022 and have recently withdrawn the money from my HSA account. When I selected the "OK, I'll withdraw the full excess contribution by April 18, 2023" in the HSA section in TurboTax, there was a message "unfortunately, some of your excess contribution is caused by a prior year excess contribution. While it's too late to remove a prior year contribution, you can still remove the $2534 contributed for 2022".
I'm confused about the "caused by a prior year excess contribution" statement and wonder how to work around this.
Additionally, the amount I withdrew from my HSA account was $60 more than the excess contribution amount. In this case, can I report it as an "other income"?
