In error, I transferred, online, $2,000 to my empty Traditional IRA account instead of to the Roth IRA. I contacted the Bank immediately and they, the next day transferred the funds to the correct account BUT they have now issued a 1099-R for the $2,000, as a withdrawal. And entering that into Turbo Tax of course drives an extra tax burden. Is there a way around this ?
In Turbo Tax in the IRA Contributions Worksheet I entered the $2,000 as a Contribution on Line 1. Also as a IRA Roth recharacterization on Line 4 but I don't see either of these offsetting the 1099-R as income.
Being self-employed I have maximized and entered my $8,000 Roth IRA contributions, of which the above $2,000 was part.
