Help - Additional question on this topic.
We took a distribution, and because we didn't pay anything back in 2020, it appears we need to claim this as income. The message we get in Turbo Tax is:
"Based on the code you entered in box 7 of this 1099-R, you're paying extra tax on this money." (The code that is in box 7 is a "1".)
Is this correct? I was under the impression, we would not be taxed on this money.
Or is it, that we pay tax now, and then if we repay the distribution in three years, we could be reimbursed for the tax we paid?
Advice welcomed!
