In 2021 made a 7,000 contribution. In January 2022 realized we were not eligible to make contributions so had the money withdrawn on 1/15/22. Fidelity sent me 6,578 due to loss. Doing an amended 2021 return Turbo asks how much contributed.. 7000; how much withdrawn 6,578.. Showing I have a tax due? If I say I withdrew 7,000 then no tax due. How should I handle this? How would the IRS or TT know I took a loss? It just looks like I didn't withdraw all that was deposited. Fidelity sent in a 1099-R showing 6,578 so there would be a mismatch if I just enter 7,000. Will I also continue to be penalized for not taking out the additional $422 ? Please help me figure this out. Thanks
