@mrohling wrote:
Hi,
Need some help. Last year, I opened a traditional IRA account and contributed $7K to it. The next week, I changed my mind and withdrew the money. I read that I can change my mind on the contribution and pull the money back out without penalty. I have received my IRA statement from fidelity and it was loaded into turbotax. The system is trying to charge me a penalty for early withdraw. The distribution code on the form is 1-Early distribution (Except Roth IRA). There is a long list of list of exceptions to choose from. Which one do I select in my situation?
thanks
First of all you have 7 days under tax law to revoke a contribution and no form whatsoever should be issued.
Otherwise a "return of contribution" before the due date of the tax return should have a code 8 in box 7 (contribution returned is same year as contributed.)
Contact Fidelity for a corrected 1099-R.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
