Hello,
I funded a Traditional IRA in late 2024 with a financial institution in the amount of $7000, but soon withdrew it as an excess contribution as I decided to leave said financial institution. This $7000 contribution was made with post-tax dollars and was never deducted from income.
By time I made the withdrawal, I lost about $6, so the distribution was for $6994. On my 1099-R, the $6,994 is showing as taxable. However, it SHOULD NOT BE as this was funded with after-tax funds and was never deductible.
TurboTax of course kept adding this $6994 to my income, which is not correct. I see of no way to remedy this besides changing Box 2a Taxable Amount of the 1099-R to $0.
Is this the right way to handle this?
I subsequently funded a Traditional IRA after all of this was completed at another financial firm, and did a same-day Roth Conversion of those funds. This is all correct in TurboTax, but the original withdrawal as excess contribution with the "old" financial firm has no way I can see to change the Taxable Amount to $0.
