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Hello @DanaB27 I am back again with a follow up question.

 

Last year, I removed an early excess contribution to my ROTH IRA and therefore that essentially became an early distribution. The goal was to remove the excess ahead of time to avoid paying a tax penalty for tax year 2022 so I wanted to take care of this for tax year 2021. I have a 1099-R (received in 2023) for an amount of 260$ and it was associated with a loss and so I only got 237.04 with tax withheld from that amount. I have a PJ code and the form is for 2022. I had the impression that I wouldn't be tax for any early distribution that took a loss from my ROTH IRA as that's a post tax account but turbo tax is calculating otherwise. Am I getting something wrong? Thank you for your time.

 

I want to note that I had already reported this distribution in my 2021 tax year submission, if that changes anything. Thanks again.