I withdrew $18K from a traditional IRA in Feb 2023 and repaid the same $18K in March 2023 back into the same IRA account. I received a 1099-R from the brokerage firm indicating that entire $18K is taxable (Box 2a) even though the $18K was repaid within 30 days. TurboTax (CD) says the repayment is classified as "excess contributions" ($10.5K) for CY23. How can I avoid a taxable event?
After completing entry of the Form 1099-R there will be a screen which asks what you did with the money. You need to select that you put the money back into another or the same tax deferred retirement account.
And don't enter it under Deductions as a new IRA contribution. Only enter them from the 1099R forms.
Many thanks for the timely response - I appreciate the guidance.