I agree with everything that BillM223 said except that, with the return of excess contribution properly paid to you, the HSA custodian should not be issuing any corrected Form 5498-SA. The Form 5498-SA is still required to include the excess contribution in box 1 even though the contribution was returned. The code 2 2020 Form 1099-SA will indicate the return of the contribution. The distribution remains a distribution from the IRA that is includible on your tax return without treating it as an HSA Funding Distribution.
(I can't imagine that the HSA custodian and the IRA custodian could have conspired to make it as if the distribution from the IRA never happened, particularly since the Form 1099-R reporting the distribution from the IRA would become erroneous.)
