Hi everyone. I made a deposit of $2000 to a traditional IRA and then realized I was not eligible for any deductions given my income and immediately withdrew the money, marking it as an excess contribution. I think I made $5 in the few hours it was in the account. Basically made an accidental deposit removed it the same day. I just got a 1099-R and it has me withdrawing this as a distribution and according to turbotax I need to pay taxes on the $2k withdrawal (10% penalty) and it seems to be treating it as additional income although it was already income I made (and paid taxes on) in 2022.
What should I do? Thanks!
