You got me confused...was the original excess on your 2023 return or on your 2024 return?
If the excess is on your 2024 return, then all you have to do it tell TurboTax, when it tells you the excess, that you will withdraw it before April 15, 2025.
Listen, calculations on form 8889 (HSA) are done on an annual basis, so it doesn't matter which month you do something.
If the excess was on your 2024 return, you have until April 15, 2025 to withdraw it.
If the excess was actually on your 2023 return, then you were required to withdraw it prior to April 15, 2024. If you did not (because of treatment) then it carried over to 2024, and you were charged a 6% excess tax on the carryover amount.
For "most" people, you could just use the carryover amount as a contribution in the following year, but...as a Medicare person, you will never be eligible to contribute to an HSA again.
The only way to stop the perpetual carryover and 6% is to take a distribution from the HSA, not for medical purposes. Just call the HSA custodian and ask to withdraw the original amount of the excess. Take the money and go to Las Vegas or do whatever you want. Then probably early next year (but custodians are unpredictable on when they do this) you will get a 1099-SA with the distribution.
When you enter this 1099-SA in TurboTax for your 2025 return, be sure to say NOT for medical expenses. Then TurboTax will add the distribution amount (the excess) to your Other Income and hit you with a 20% penalty...but THEN, the rollover will be canceled permanently (not more 6% a year).
Does that work for you?
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