@BillM223 wrote:
I assume that in early 2021 when you realized that you had made a $200 excess contribution in 2020, that you told TurboTax that you were going to withdraw the excess by the due date of the return, but when you withdrew it, it was as a regular distribution.
Correct. For my 2020 return I told TurboTax that I made an excess contribution and would withdraw it by the due date, but when I withdrew it I erroneously took it out as a regular distribution.
I definitely have $200 worth of eligible medical expenses last year, that's not a problem. I was concerned the mischaracterization of the withdrawal might be an issue, but if I'm understanding correctly as long as the money is removed "somehow" I'm off the hook for the 6% excise penalty. Does that sound right?
