DeluxeXL t1_je0qt8r wrote on March 28, 2023 at 4:09 PM

Was there any change in account value between the 2021 contribution and withdrawal? For example, if account value immediately before contribution was $30000.00, contribution was $6000.00, and account value was $36000.00 immediately before withdrawal, then there is no change.

>I spoke with Vanguard who had said I should just take it back out, so I ended up transferring the money back into my bank account a few days later.

You were supposed to go through "return of excess contribution", not just a withdrawal. Withdrawal does not undo a contribution unless the net income attributable is also removed.

DFWNannySearch OP t1_je0sm97 wrote on March 28, 2023 at 4:21 PM

Looks like it made $0.01 in interest, but that was also removed with the $6000. Would there have been a form for "return of excess contribution"?

DeluxeXL t1_je0t73r wrote on March 28, 2023 at 4:24 PM

Call the IRS to discuss. You might be able to convince them that you did everything required by law to return the excess contribution - that the withdrawal was actually the return of excess contribution. It's just not coded properly on 1099-R.