Hi,
It would be great help if I can get some advice on "how I can avoid paying double tax on After-tax money"?
- I Rolled over Roth 401K by mistake in "Rollover IRA" account (which is Traditional IRA) in 2023.
- I took distribution from that "Rollover IRA" in 2024. Completely unaware of the account type.
- Now it triggered 1099-R with distribution code "1" (which means I owe taxes).
Technically the money I withdrawn was After-tax $$. I didn't realize that I made a mistake by opening wrong type of account at first step until I was preparing to file 2024 Tax returns.
FYI - I withdrawn $$ only which was contributed by me to Roth 401K, and did not touch the Gains.
I contacted my "Rollover IRA" account holding company if they can help do something about this, unfortunately they can't do anything at their end since account I opened with them was back in 2023 which is long time ago, though they advice to contact Tax advisor to get help to resolve this.
Please advice how to avoid double tax on this and file taxes for 2024.
Thank You.
