Hello! I contributed to a Roth IRA last year, but then found out when doing my taxes this year that my income was higher than the max to contribute to a Roth. I withdrew the funds I had contributed to the Roth when I saw that, and filed my taxes as not having contributed.
Then when I talked to my financial institution about it they said that the withdrawal I had made counted as an early distribution and would be subject to a 10% tax, which they'd send me a form for at the end of this year to file in 2024. I hadn't been eligible to contribute in the first place, and I didn't want a distribution, just wanted to reverse the whole thing. The funds were of course, after tax, but now I'm being taxed on them again as an early distribution.
I talked to the FI and they said they can't retroactively mark the transaction as not early distribution, but that I might be able to submit a form of some sort to the IRS to clarify the situation so that I don't get the 10% extra tax on already after-tax contributions.
Is there a way for me to solve this problem so I don't have to pay the 10% early distribution tax?
Thank you!
