Hi @BillM223, thanks for the reply. Your reasoning is sound and what I was suspecting. All good questions, please see my answers in bold below.
"my HSA distributions totaled $2537.57 which included the excess distribution of $681," - Are you saying that you actually withdrew the $681 before the due date of the 2022 return (i.e., April 15, 2023)? Yes, I did withdraw the $681 before the due date of 2022 return.
When you withdrew that $681, did you tell the HSA custodian that it was for "withdrawal of excess contributions"? No, I did not inform the HSA custodian that it was for withdrawal of excess contributions. At the time, I did not realize my HSA contribution limit would be prorated due to the fact that I switched insurance plans mid-year. That was not apparent until I filed for the 2022 tax year.
