dmertz
Level 15

Deductions & credits

The HSA custodian needs to know nothing about the distribution of $475.01 being used to correct an excess contribution.   In fact, if you already have made distributions for qualified medical expenses in 2023 in excess of $475.01, you don't need to make any distribution of $475.01 now.  You'll simply report as used for qualified medical expenses the amount distributed for those expenses reduced by $475.01.