My story is a little complicated. I accidentally recharacterized $6000 from Trad to Roth IRA in 2021 and found out about that only in 2023. So I amended my tax return for 2021 and paid 6% penalty on excess contributions for each year 2021 and 2022.
I requested the withdrawal of excess contributions from Roth IRA later in 2023. The investment of $6000 had lost its value to 5400 and it was withdrawn from the brokerage. I additionally took $ 600 distribution from Roth IRA so that a total of $6000 would be removed from the Roth IRA and I would not have to pay any more penalties for 2023.
I received two 1099R this year; one with $600 in box 1 and code J and other with 5400 in box 1 and code PJ . Here is the problem; when I upload both 1099R TurboTax generates 5329 with only 600 removed from excess contribution and is asking to pay fine on remaining 5400. How do I fix this?
Thanks in advance.
