One way to handle this would be to return the money back to your HSA as a mistaken distribution repayment. To do this, you need to tell the bank that the money you are sending in is a mistaken distribution repayment; they may have a form you need to fill out. This option will essentially undo the withdrawal, and if you get this done before you file your taxes you won’t owe the penalty and can take the tax deduction for this contribution. Of course, you didn’t want to make this contribution in the first place, so this doesn’t necessarily fix that problem the way you want all by itself.

Ask yourself if you have had any legitimate medical expenses that have not been reimbursed. You can go all the way back to the point in time when you first opened your HSA. Remember that there are lots of different expenses that qualify; in addition to doctor visits and prescriptions, things like dental procedures and chiropractic also qualify. See IRS Publication 502 for a list of qualified expenses. If you find that you have had $1083 in unreimbursed expenses (and have the documentation to prove it), then you can claim on your tax return that this distribution was for qualified medical expenses. If you have less than that in expenses, you’ll want to return the rest via the mistaken distribution repayment.

If you don’t have enough expenses to withdraw as much as you would like, one thing that may be a possibility might be an excess contribution withdrawal. Normally this is done when you find that you have contributed more than your limit, but I’m wondering if it is allowed to do one even if you haven’t hit your limit. I have asked another question to see if anyone knows if this is possible.

One way to handle this would be to return the money back to your HSA as a mistaken distribution repayment. To do this, you need to tell the bank that the money you are sending in is a mistaken distribution repayment; they may have a form you need to fill out. This option will essentially undo the withdrawal, and if you get this done before you file your taxes you won’t owe the penalty and can take the tax deduction for this contribution. Of course, you didn’t want to make this contribution in the first place, so this doesn’t necessarily fix that problem the way you want all by itself.

Ask yourself if you have had any legitimate medical expenses that have not been reimbursed. You can go all the way back to the point in time when you first opened your HSA. Remember that there are lots of different expenses that qualify; in addition to doctor visits and prescriptions, things like dental procedures and chiropractic also qualify. See IRS Publication 502 for a list of qualified expenses. If you find that you have had $1083 in unreimbursed expenses (and have the documentation to prove it), then you can claim on your tax return that this distribution was for qualified medical expenses. If you have less than that in expenses, you’ll want to return the rest via the mistaken distribution repayment.

You might be tempted to try an excess contribution withdrawal, which is normally done when you find that you have contributed more than your limit. However, the IRS has clarified that excess contribution withdrawals are not allowed if you haven't actually contributed past your contribution limit.