{MODS} seems like a Turbotax bug. Really lack of correct verbiage. use the 1st option. This is so Turbotax will automatically show the removal of the excess, remove the 6% penalty and form 5329. using the last option will not do this. If the HSA was done through your employer the excess will become taxable income. There is also the issue of reporting earnings on the excess because they too must be removed and included in income. if the withdrawal request properly stated it was a withdrawal of excess contributions the admin/trustee should do this automatically.
