Did I do the correct entries in TT for a medical exception to an early IRA distribution?
I'm 59 years old, in a HDHP, and in 2020 I did a trustee-to-trustee distribution of $8100 from my IRA to my HSA. This was my only HSA contribution for the year. I incorrectly thought that this direct distribution would qualify for the one time IRA to HSA funding distribution (HFD) without incurring a 10% early distribution penalty. When researching further I realized that we are eligible for the medical exception because our medical expanse minus 7.5%xAGI is greater than the maximum allowed HSA funding distribution of $8100.
In TT after I entered my 1099-R data for the IRA distribution, I 1) had to claim I did "other" with the distribution rather than roll it over to another retirement account; 2) then claim I did a personal contribution of $8100 to the HSA; and 3) then claim the medical exception during the 1099-R early distribution questions due to our medical expense amount for 2020.
Did I enter the data correctly in TT to claim this exception? Also, am I still eligible for the one time HSA funding distribution when I turn 59 1/2?
Thanks in advance!
