@Critter-3 wrote:
I have a real problem with this statement " It was placed back into my IRA and was called a contribution. "
Talk to the IRA custodian ... it CANNOT be a contribution ... it must be reported as a rollover on the form 5498.
The financial institution would not allow a new contribution if it exceeded the contribution limit. They most likely said that it was a "rollover contribution" which is what the IRS calls a rollover. Technically it is a contribution but not a new contribution. That is how the 5498 describes it for box 2:
Box 2. Rollover Contributions
Enter any rollover contributions (or contributions treated as rollovers) to any IRA received by you during 2020. These contributions may be any of the following.
**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.**
