TurboTax needs to know if you made an excess contribution to your HSA in the previous tax year- that is, contributed more than the limit - and did not withdraw it but rather "rolled it over" to the current tax year.
If you did not withdraw the excess contribution in the early part of the current tax year, then the amount "rolled over" counts against your current tax year's HSA contribution limit.
The point of much of the HSA interview is to determine what your contribution limit is in the current tax year, and knowing if you have an excess in the previous tax year that you "roll over" to the current tax year is part of that calculation.
If you, in fact, withdrew the entire excess contribution amount in the early part of the current tax year, then you should not answer on the previous screen ("Did you overfund your HSA in [the previous tax year]?") as "yes", that you overfunded your HSA in the previous tax year, because you "fixed" the overfunding when you withdrew the entire amount of the excess.
[Edited 3/17/2020 5:22 pm CDT - made year neutral]
TurboTax needs to know if you made an excess contribution to your HSA in the previous tax year- that is, contributed more than the limit - and did not withdraw it but rather "rolled it over" to the current tax year.
If you did not withdraw the excess contribution in the early part of the current tax year, then the amount "rolled over" counts against your current tax year's HSA contribution limit.
The point of much of the HSA interview is to determine what your contribution limit is in the current tax year, and knowing if you have an excess in the previous tax year that you "roll over" to the current tax year is part of that calculation.
If you, in fact, withdrew the entire excess contribution amount in the early part of the current tax year, then you should not answer on the previous screen ("Did you overfund your HSA in [the previous tax year]?") as "yes", that you overfunded your HSA in the previous tax year, because you "fixed" the overfunding when you withdrew the entire amount of the excess.
[Edited 3/17/2020 5:22 pm CDT - made year neutral]