Thanks in advance for any advice. In 2024 I accidentally transferred $4K to my Roth IRA instead of my savings account. I immediately called the agency and had them move the $4K back to my bank account from my Roth IRA account. This all happened in a single day.
Fast forward to receipt of a 1099-R from the bank with the gross distribution (box 1) reported as 4,000. Box 2B is marked "Taxable amount not determined" and Box 7 Distribution Code is marked "J".
This was NOT an excess contribution.
Once I entered the 1099-R into Turbo Tax (my return was all but complete and I found this 1099-R in my email before filing and went back to add it), it reduced my refund by $752. I assume this $4K was treated as "income".
Is there anyway around this accidental contribution followed immediately by the withdrawal of the contribution? I am not yet 59.5.
Should I contact the bank to see if there could be some sort of exception applied to the 1099-R or is there something I should do manually in TurboTax to NOT have this counted as taxable income?
Thank you.
