A return of an HSA contribution made for 2023 had to be done by October 15, 2024. Since that was not done, a distribution to correct the excess is required to be an ordinary distribution equal to the amount of the excess, made taxable by not applying it to any medical expenses. Because no such distribution was made in 2024, you are again subject to the 6% excess contribution penalty for 2024 as you were for 2023.
If there was no new excess contribution made for 2024, there was no 2024 HSA contribution eligible to be returned. An ordinary distribution in 2025 of an amount equal to the excess made taxable by not applying it to medical expenses will eliminate the excess on your 2025 that you file next year. If you were under age 65 at the time of this distribution, the distribution will also be subject to a 20% additional tax.
