Yes, I meant 2024. I've corrected that.
Being age 62, there is no good reason to make an HFD because the only reason to make an HFD is to avoid an early distribution penalty on the distribution from the traditional IRA, a penalty that you won't have anyway. You should report the HSA contribution as a regular deductible personal contribution for either 2023 or 2024 (taking into consideration whether you will be eligible for an HSA contribution for 2024) and make sure that the HSA custodian has recorded it accordingly. The income from the traditional IRA distribution will be on your 2024 tax return. This derives from IRS Notice 2008-51 which says, "The amount contributed to the HSA through a qualified HSA funding distribution is not allowed as a deduction and counts against the individual’s maximum annual HSA contribution for the taxable year of the distribution." This in turn derives form the wording in section 408(d)(9)(C) of the tax code which only makes sense if the contribution is for the same year as the year in which the distribution from the traditional IRA occurs.
As you mentioned, IRS Pub 969 says, "The qualified HSA funding distribution is shown on Form 8889 for the year in which the distribution is made." This means that it can't be for the prior year. The distribution from the traditional IRA was made in 2024, so for it to be an HFD it would have to be reported on a 2024 Form 8889, making it an HSA contribution for 2024. But again, there is no reason for you to claim that the contribution is an HFD.
