Under the cares act I withdrew $100k, but my employer held back $5k for state income tax. I rolled over $95k to another IRA. When I go through all of the questions in turbotax, I am now getting a penalty on the $5k for federal and state income tax. Shouldn't I have the option to now roll that money back into my IRA after I get it back from the state without taking the penalty? I had no choice in the $5k being held back, and now I'm getting penalized for it. That doesn't seem right. Any help on how I should approach this, or how to handle this in TurboTax so I am not penalized.
