2020 Roth IRA contributions, withdrew in 2021, filed 2021, says I need to amend 2020?

[adamtaxed]

I'm not sure how to proceed. I haven't amended a return before and don't know the extent of what I should do. I use the TurboTax desktop software each year. Timeline:

2020 year: contributed max amount to Roth IRA.

Apr 2021: filed 2020 taxes.

June 2021: after realized rule for Roth IRAs that I earned too much in 2020, withdrew the contribution and gains from 2020 contribution through my brokerage, completing their required form for this type of withdrawal.

April 2022: completed taxes, reported withdrawal from IRA on taxes. No contributions to Roth IRA were made in 2021. TurboTax software said I would need to amend 2020 tax return because of my withdrawal.

Is this accurate? If so, could this be done using Turbotax 2020 software that I have, or are there specific forms to fill out that makes it simple?

[macuser_22]

---

@adamtaxed wrote:

I'm not sure how to proceed. I haven't amended a return before and don't know the extent of what I should do. I use the TurboTax desktop software each year. Timeline:

2020 year: contributed max amount to Roth IRA.

Apr 2021: filed 2020 taxes.

June 2021: after realized rule for Roth IRAs that I earned too much in 2020, withdrew the contribution and gains from 2020 contribution through my brokerage, completing their required form for this type of withdrawal.

April 2022: completed taxes, reported withdrawal from IRA on taxes. No contributions to Roth IRA were made in 2021. TurboTax software said I would need to amend 2020 tax return because of my withdrawal.

Is this accurate? If so, could this be done using Turbotax 2020 software that I have, or are there specific forms to fill out that makes it simple?

---

Yes.  A 2020 excess returned in 2021 can only be reported on an amended 2020 tax return.    Earnings on an excess IRA contribution is taxable in the year the contribution was *for*, not the year returned.

[macuser_22]

---

@adamtaxed wrote:

I'm not sure how to proceed. I haven't amended a return before and don't know the extent of what I should do. I use the TurboTax desktop software each year. Timeline:

---

See this article for amend instructions:

https://ttlc.intuit.com/community/amending/help/how-do-i-amend-my-return/00/27439