Hello, In January of 2020 I deposited $3000 into my IRA. Subsequently it dawned on me that I had no earned income in 2020, so I withdrew the excess contribution in December of 2020. 1099R shows distribution code 8.
How do I record this so it is not taxable. Contribution and withdrawal in same year...should be a wash. Please give me some thoughts. Thank you
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The taxable amount in box 2a of the code 8 Form 1099-R should only be the amount of earnings required to accompany the returned contribution. The amount in box 2a is taxable. If the amount on box 2a of the Form 1099-R is equal to the amount in box 1, contact the payer to request a corrected Form 1099-R. Box 2a of the Form 1099-R should not be blank. If it's blank on the Form 1099-R provided by the payer, enter a zero in box 2a of TurboTax's 1099-R form; some payer's mistakenly leave box 2a blank to indicate that none of the distribution is taxable and this can confuse TurboTax.
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