I mistakenly deposited funds into an individual 401K that I am not qualified for on December 30, 2022. When I discovered this, I had the funds (along with the earnings) withdrawn (around February 2023) before the filing of the 2022 tax return. For tax year 2023, I received a 1099-R showing the Gross distribution (Box 1) and Taxable amount (Box 2a) for the amount deposited in error with a distribution code (Box 7) "P" and the earnings portion with a distribution code (Box 7) "08". I believe I should only be reporting (taxed) on the earnings while the funds were in the account. Why would the taxable amount report the contributions that were withdrawn. No deductions were taken for this contribution; however the trustee will not issue a corrected 1099-R. What are my options?
