Which codes to use for the following case as TurboTax suggested me to review the codes brokerage firm told me for 1099R of 2019? Please help if these info for 1099R of 2019 is correct or not. Thanks so much!
Background:
- Contributed $500 to Tradition IRA in Jan 2018 for 2018. Didn't meet 2018 income to contribute
- Request to Withdraw in Apr 2019 with 10% tax withholding :(
- Earnings of about $9
- Brokerage advised that:
Total Distribution = $509
2a = $9 for gross earnings
Box 4 = $1 (for tax)
Box 7: code 8 for $500 and code P for $8 of net earnings and $1 for tax (10%)
* TurboTax noted that code 8 and P are wrong. So I only used code P and it worked. Is it correct?
* Shouldn't there be 2 codes required?
* Do I still add $5 in the Deduction for Traditional IRA contribution? (so far I did and Turbo Tax in that portion asked for excess contribution. And the review seems fine for that)
Anything else I should add and correct?
