So TurboTax told you that you had $3,100 in excess contributions, and you withdrew that amount by telling the HSA administrator that you wanted to "withdraw excess HSA contribution's, right?
If so, this is what is going to happen in 2025.
Nothing.
Well, not exactly but close enough.
The $3,100 is yours, to do whatever you want with it. Have fun with it.
As you probably know, just because you can no longer contribute to your HSA, doesn't mean that your HSA goes away. Instead, you can continue to take money out of the HSA to pay for qualified medical expenses, until the HSA is exhausted.
And if you are 65+, you can take money out of the HSA for any reason at all with no penalty - you just have to pay income tax on the distribution. At this point, the HSA becomes like a funny IRA.
Note that in any year in which you take distributions out of the HSA, you have to add form 8889 to your return. You do this by going through the HSA interview. You will tell TurboTax that you have an HSA (true), don't have HDHP coverage (also true), and have to dance around an issue in the Federal Review, when TurboTax becomes confused about why you have an HSA but don't have HDHP coverage.
In the Review, TurboTax will ask you to enter Self-only or Family on Line 1 of the 8889 for whichever HDHP coverage you had. Of course, at this point you have neither but TurboTax won't let you continue until you choose one or the other.
In this case, choose Self-only. Since you indicated that you have no HDHP coverage elsewhere, the numbers on the rest of the 8889 are correct - you are doing this just to get around this roadblock in the Review so you can e-file.
And once you exhaust the funds in your HSA, you no longer have to report it or add the 8889.
Enjoy the $3,100.
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