You did fail to complete the testing period for a qualified HSA funding distribution, but if you are eligible for Medicare, it seems likely that you have no need to claim an HSA funding distribution since the only purpose for doing so is to avoid an early-distribution penalty on the distribution from the IRA (which you would not have anyway). If so, when entering the Form 1099-R simply do not indicate that the IRA distribution was used to fund the HSA, then separately claim a deduction for a personal HSA contribution.
