My daughter contributed to a ROTH IRA in Dec 2020 when it turns out she was ineligible. She has removed the contribution and earnings in Feb 2021. The advice earlier in this thread is to use codes P & J on the 1099-R and then enter the year as 2021 for the 1099-R to make the earnings/penalty taxable in 2020.
Originally I used code 8 and J instead, which seems to automatically apply to 2020. Is there a problem doing that?
Also, can I just enter it as a 1099-R or do I have to mark it as a substitute. Doing that seems to create the need to contact the IRS so they can nag Fidelity, and write explanations on the substitute form
