"I contributed the maximum 8750 family amount (over 55) from Traditional IRA to new HSA thru Fidelity (trustee to trustee transfer) in January 2024 for 2023 tax year."
This is not permitted to be a qualified HSA funding distribution. HFDs are only permitted to be made as HSA contributions for the current tax year, 2024 in this case. For this to be an HSA contribution for 2023 you would have to report the HSA contribution as an ordinary personal contribution which also means that you would have to make sure that the HSA custodian reports this as a contribution for 2023. The traditional IRA distribution must then be reported as an ordinary traditional IRA distribution on your 2024 tax return, incurring an early-distribution penalty if you are under age 59½.
The probably better option would be to report this as an HFD on your 2024 tax return, provided that you will remain HSA eligible throughout 2024 and 2025, making sure that the HSA custodian records this as an HSA contribution for 2024 [not 2023 as I originally typed], then separately make an ordinary personal HSA contribution for 2023 using non-IRA funds.
