dmertz
Level 15

Get your taxes done using TurboTax

Avoiding the penalty for 2014 would have required receiving a gain or loss adjusted distribution of the excess and, if there was a gain, paying tax and possible early-distribution penalty on the gain with your 2014 tax return.  However, you are beyond the 3-year statute of limitations for receiving a refund of the penalty paid, so that's not a possibility.

 

In what year did you receive the corrective distribution, the year of the Form 1099-R you are referring to?