Thank you for feedback on time frame that deadline for obtaining a corrective distribution on ineligible HSA contributions being prior to due date of 2023 tax return.
When reached out to HSA custodian I was advised there is a withdrawal form that indicates a section to request a HSA excess contributions refund by indicating specific amount and tax year. Would need to complete this for 2023 & 2024 contributions. Then should receive a corrected 1099-SA tax form (tied to HSA) and then Box 2 should be marked as earnings one excess contributions.
What is unclear is if HSA custodian will be able to only send corrected 1099-SA or if can provide refund since 2023 gross distributions exceeded the total 2023 contributions. Gross distributions being funds in HSA account utilize for eligible health expenses and there were more funds from carryover from prior year.
