To the second response, yes I received a 1099-R form which combined all my IRA distributions. The HSA transfer was indicated as a IRA distribution. Then it was listed as being a contribution ( for the one time IRA to HSA transfer). Box 7 was listed as a 7, normal distribution. Turbo tax put in line one the value of the HSA contribution only, Line two has a zero, line 3 has the same as line 1 (Turbotax input), line 4 is what I am paying in early withdrawal penalties. Funny thing is that only the HSA portion of my distribution is listed as an early distribution, the other amount I lived off of was not. So, why am I being penalized when I am in my 60's?
