I received a 1099r after mistakenly contributing to my IRA twice but withdrew days later to compensate. Do I need to do anything to avoid an adverse tax consequence?

[Spino · Accepted solution]

Well, for sure keep all the documentation with your records!

In situations like this, depending on the timing, you may receive a corrected form later from your company. You don't need to file this unless it shows a different amount of tax being withheld. The important thing is to report what your actual tax situation is on your return when you file it.

On the reporting for the 1099s and W2s there is a box for noting if the results are not correct. Look for this box as you enter the information.

You may want to read the instructions on "recharacterization" to see if this is what you have done, or check with your brokerage/bank/custodian to see if they have any special instructions as to how they resolved your situation in terms of paperwork and therefore how you should file. In some cases like this, the brokerage may not recharacterize, but rather just edit the original transaction in their records, depending in part on how much time has past between the mistake and the correction.