I made the nondeductible (after tax) contribution to a Traditional IRA with the intention to then roll it to a Roth IRA as I have done in previous years. However, I was told that I would not be able to do that because I now have other Traditional IRAs and the conversion to Roth would end up being taxable because I could not designate just this $7000 post-tax as the money I was converting. (It would have to consider the balance of all my IRAs which are much larger and all pre-tax.). So, Fidelity immediately returned the contribution and reported it on 1099R using the code "8" for return of contribution taxable. I made the contribution in 2021 and had the return just a few days later. I want to just remove that 1099R but I think I should somehow do it correctly now!
So, I made a contribution with after tax dollars.
The contribution was returned with no gain.
I don't want to pay tax on the distribution.
ANY thoughts would be appreciated. THANK YOU for reviewing.
