The problem occurs because the law permits only actual excess contributions to be removed by return of excess contribution and TurboTax enforces this limitation. Amounts distributed beyond the amount required to be distributed to return the true excess contribution are technically regular distributions.
What is the code in box 3 of your 2024 Form 1099-SA?
Was the contribution made through your employer and was reported with code W in box 12 of your W-2 or was it a personal contribution?
