Thank you demertz for the thorough explanation.
Let me clarify some things. I did file our 2021 taxes on time, so the distribution should be considered return of non-deductible contributions. I received the full amount ($7000) from my custodian Vs. amount less losses. They tell me the full $7000 will be on the 1099R that will be issued with code 8 on box 7.
Here is my question. Suppose I file 1040X, reporting $7000 that was distributed on a substitute 1099R (as allowed in TurboTax), that will match the actual 1099R that will be issued in Jan. 2023. Will I be penalized because the wrong amount was reported? Will I be taxed for the extra amount reported?
Will I need to amend 8606 with 1040X?
If I wait for the 1099R in 2023, won't it be too late (past 6 months) to file an amendment for the return of 2021 contributions??
