@mrohling wrote:
Hi. I did call Fidelity and asked them to withdraw the contribution for me. I did not withdraw it on my own. What is odd is that when I put in a code 8 in turbotax, it calculates a penalty as I mentioned before. So, if I have fidelity update my 1099-R with a code 8 in box 7, I'm in the same boat from a turbotax perspective unless I'm misunderstanding what will happen.
You are not understanding - there is more wrong with your 1099-R then just the code in box 7. The code 8 1099-R would have the amount contribution returned in box 1 and ONLY only earnings attributed to the contribution (probably only a few cents in a "few days") in box 2a. Box 2a is the taxable amount which would probably be zero or close to it.
**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.**
