Hi,
I have made some excess IRA contributions in Jan 2022 and withdrawn in Dec 2022. Now I am having reporting issues with TurboTax. For simplicity,
1. I contributed $3000 into IRA on Jan 2022
2. I converted the full amount to Roth in a few weeks later
3. Because it turned out I didn't have enough earned income in 2022 for the IRA, I asked to withdraw the entire contribution from Roth, which turned out to be, say, $2000 after capital loss.
In 2023, I received two 1099-R: 1099-R-1 for the Roth, $2000, which is correctly marked as code 8J (excess) in box 7 with table amount (box 2a) of 0. The other one 1099-R-2 is for Simple IRA, $3000, which is marked as taxable amount not determined (2b), and total distribution.
Now the question is how to report the 1099-R-2: If I just enter this 1099-R-2 in Income section as is, Turbotax would treat this as taxable IRA distribution.
In the Deduction & Credit section, should I report this $3000 as IRA contribution even though it was converted to Roth and later full withdrawn? Or should I just not report it on the contribution side at all?
My situation is a bit more complicated than this but would appreciate someone can help me answer this question first.
Thanks,
ZX
