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Get your taxes done using TurboTax
Since the return of contribution occurred in the same year as the contribution, 2020, the Form 1099-R will have codes J and 8, not J and P. Any gains required to be distributed with the returned $2,000 will be subject to tax and to a 10% early-distribution penalty on your 2020 tax return. As macuser_22 indicated, 2020 TurboTax will handle this when you enter the Form 1099-R that you will receive near the end of January 2021.
‎December 16, 2020
2:02 PM
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