2652352
In 2020, my wife contributed $450 to her traditional IRA account just to lower what we had to pay in taxes. We later found out that the IRA account was locked and we could no longer contribute to it. And we had opened a Roth account which maxed out our contribution amounts for 2020. So to prevent any over contribution penalties, they withdrew $450 from her Roth account. I mistakenly kept the $450 contribution on our 2020 tax return when it was filed. I now received a 2021 1099-R for a Gross distribution of $450. The Distribution codes are P J.
I first tried to enter this 1099-R into my 2021 Turbo Tax but it said I needed to do the amendment to the previous year for it. So I'm just a little confused now for what I need to do.
To amend my 2020 return, do I just go and remove the $450 IRA contribution or do I leave that and just add this 2021 1099-R to that return and then refile it?
And sorry, the whole occurrence of what happened is still confusing to me and I don't fully understand it even when I talked to our insurance agent again about it.
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You took the excess contribution out of your ROTH IRA for tax year 2020, so you need to pay tax on the earnings plus a penalty for early withdrawal for 2020.
You need to amend your 2020 tax return to report the 1099-R form. TurboTax will calculate the tax and penalty. You can leave the rest of your 2020 tax return alone.
You took the excess contribution out of your ROTH IRA for tax year 2020, so you need to pay tax on the earnings plus a penalty for early withdrawal for 2020.
You need to amend your 2020 tax return to report the 1099-R form. TurboTax will calculate the tax and penalty. You can leave the rest of your 2020 tax return alone.
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