Was you distribution from your HSA to pay for medical expenses? If so, enter Code 1 - Normal Distribution. According to the IRS: "Use this code for normal distributions to the account holder and any direct payments to a medical service provider. Use this code if no other code applies." Your other options are:
- 2—Excess contributions
- 3—Disability
- 4—Death distribution other than code 6
- 5—Prohibited transaction
- 6—Death distribution after year of death to a nonspouse
beneficiary
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