Thanks everyone!! Your responses are very helpful. I was really confused about what the CPA firm told me. I kept thinking "what am I missing?"
I deliberately contributed $400 less than the max in 2022. When I plugged my information into Turbotax, it did exactly what you are describing. Turbotax automatically added the $400 to line 13 on Form 8889 and the prior year excess was zeroed out on Form 5329 (i.e., $400 on lines 43 and 45, resulting in $0 prior year excess on line 46).
The CPA firm told me that this wasn't enough to resolve the excess. They stated that I can claim the $400 prior year excess in 2022, but I also have to turn around and remove it via a non-qualified distribution. I think we would all agree that this step isn't necessary and my position is accurate.
