Hi Opus17 or DanaB27,
Good Morning. While preparing for filing 2022 return got confused with couple hope you will help
to navigate things in right direction. Firstly a little summary to set flow of things right.
I never used to record my Roth IRA contribution in turbo tax earlier, however in year 2021 we realized made
excess Roth IRA contributions (happened for not paying attention to MAGI) for Year 2019/2020/2021. Based
on your help with inputs we did the following:
1. Amended 2019 tax return to to calculate the excess and had a form 5329 with a 6% penalty.Subsequently paid 6% penalty and dues as communicated by IRS.
2. Subsequently amended 2020 tax return to include the prior excess contribution (from 2019) and the current (2020) excess contribution. Paid 6% penalty
with amended tax retun and subsequently paid minor dues as requested by IRS for interest and late fee etc.
3. Withdrwan excess contribution (with earnings) for Year 2021 for myself and spouse roth IRA accounts before 18th April. In the tax return for Year 2021
reported excess contribution of year 2019 and Year 2020 and paid 6% penalty along with return. To avoid consudion here I didn't reported any excess
contribution for Year 2021 as we were able to withdraw before filing.
4. IRS after a long time approved 2019 and 2020 tax ammendments. Subsequently removed excess contribution for year 2019 and year 2020 from our ROTH IRA
accounts.
5. Now while preparing for 2022 tax return my confusion started as on how to handle 1099-R received from TDM and Vanguard. Do we have to ammend tax return
for year 2021 prior to filing 2022 or I can just proceed with filing 2022 return.
On 1099-R for TDA on first page it has box-1 Gross Distribution and in box 7 code J and in subsequent page box-1 Gross Distribution and box 2a Taxable
amount, box 4 Federal Income tax with held and in box 7 : code J,P.
on 1099-R for Vanguard on first page it has box-1 Gross Distribution and box 2a Taxable amount and in box 7 : code 8,J and on subsequent page
it has it has box-1 Gross Distribution and box 2a Taxable amount and in box 7 : code J,P.
When In imported into turbotax overall I see four entries two for TD and two for Vanguard.
Could you please guide me on how to go about it.
Thank you for your support.
Regards,
Sri
