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Retirement tax questions
If your 1099-SA funds are reported as a normal distribution with Code 1 in Box 3, and if you have no excess contributions to withdraw, then selecting one of the options from what you shared in your question would not be correct.
If that is the case, then instead of answering the question, please recheck your original entries to verify that the medical expenses were reported, as well. See Why am I showing an excess HSA contribution in 2020?
Alternatively, if in fact you did have excess contributions, then the question asked about when the withdrawal will occur and in what amount should be answered.
For more details on distribution codes, see 2020 IRS Form 1099-SA Box 3 Distribution Codes Descriptions.
‎January 25, 2021
3:04 PM