Yes, you are correct you have to account for the withdrawn excess contribution and earnings in 2019. You will get a 1099-R in 2021 with codes P and J but you can create a 1099-R now to include it in your 2019 tax return. Then you will not need to amend your 2019 return when you get the 1099-R in 2021.
To create a 1099-R in your 2019 return please follow the steps below:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R”
- Select "I'll type it in myself"
- Select "I need to prepare a substitute 1099-R"
- Box 1 enter total distribution (contribution plus earning) of $9,198
- Box 2 enter the earnings of $ 2,198
- Box 7 enter P and J
- On the "Which year on Form 1099-R" screen say that this is a 2020 1099-R.
- Continue until you get to the explanation screen and answer that you are reporting a 2020 1099-R on your 2019 tax return to avoid having to amend in 2019.
@Drdok1
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