Hello!
Some background on my situation:
In 2022, I was heads down working on a startup. I had no earned income.
In that same year (2022) and out of habit, I made a backdoor Roth contribution (via Traditional IRA).
This month, in 2023, I came to understand that this counted as an excess contribution since I had no earned income.
I spoke with my brokerage and they have withdrawn the excess contribution + the gains on that contribution.
I understand that I can report the 2023 withdrawal (excess distribution) in my 2022 return even though I will not receive the corresponding 1099-R until 2024. This alleviates the need to file an amended 2022 return.
I should then effectively have two 1099-Rs that I report for TY2022:
I can enter these 1099-Rs into TurboTax just fine. However, I can only seem to either:
- assess a 6% excise tax because it thinks there are funds in the Traditional IRA
- pay income tax on the Traditional IRA distribution.
I should not have to pay either of these since it was post-tax money and I have withdrawn before the penalty date.
Maybe this is a bug or not a well-traveled flow? Perhaps this is not possible to do with TurboTax Online? Should I use TurboTax CD and manually modify forms there?
I've spent hours trying to get this to work. Any help is appreciated. Thank you!
