Please make sure you entered the earnings form box 2a on the "Did you use your IRA to pay for any of these expenses?" screen under "Corrective distributions made before the due date of the return".
- Click on the "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Enter Form 1099-R
- On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
- Click "Continue" after all 1099-R are entered and answer all the questions.
- Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".
No, you do not pay the 6% penalty since you remove the excess plus earnings before the due date. To confirm you indicated in the IRA contribution interview that you removed the excess contribution on the penalty screen.
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