- I agree.
- There is no box on an actual Form 1099-R labeled "Duplicate." The preparer has invented that designation on their own, so "Duplicate" has no meaning to the IRS. Since it's pretty certain that the original was sent to the IRS, the new code-G Form 1099-R would be actually be a CORRECTED Form 1099-R. The code-E From 1099-R is an original and not a corrected form.
- I agree.
As you mentioned earlier, the $4,600 is taxable, so it will add to your 2023 taxable income. That will presumably increase your 2023 tax liability that you'll pay with the filing of your Form 1040-X. The IRS will bill for any interest or penalty. Although there is no particular deadline to file the amended 2023 tax return, the earlier you file, the lower any interest or penalty.
Note that the IRA custodian will not issue any change to the Form 5498 that shows the full amount as a rollover contribution and nothing as a regular contribution. That should not be a problem since your explanation that you provide with the Form 1040-X should be sufficient and you'll be able to refer to that should the IRS question the nature of the original deposit into the IRA.
Be sure to forever keep all of the Forms 8606 that you file. They document your basis in traditional IRA contributions. When you (or your beneficiaries after you die) eventually take distributions from your traditional IRAs, don't forget that you have this basis.
