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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.**
May 25, 2020
3:22 PM