Retirement tax questions

I assume you mean a Traditional IRA and not a Roth IRA.

 

If you did not specifically ask the trustee if the IRA to do a "return of  contribution"  which would result in a 1099-R with a code 8 in box 7 and any earnings attributed to the contribution in box 2a which would be taxable, any you just took a normal distribution and it has a code 1 or 7 in box 7 then is will be a taxable distribution. 

 

 

@dmertz do you see any way to avoid the tax on this error.

 

**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.**