For tax year 2020 I contributed after-tax dollars to a Roth IRA account to later find out I was not eligible to make this contribution. To avoid the 6% I reached out to the brokerage company in 2021 and have already withdrawn the contributions along with the earnings on them. They informed me I would receive a 1099-R in 2022 that indicates this access contribution removal, but I should report the earnings as income on form 1040, and fill out form 5329 for my 2020 return.
This leads me to a few questions:
- Is the advice on what forms to complete correctly?
- If the answer to 1 is "Yes", how can I achieve this using TurboTax Premier 2020 Desktop Version
- Since I am under the age to make withdrawals I believe I owe a 10% penalty on the earnings. Where should this be reported?
- Within the federal deductions & credits section, I see an option to report contributions to a Roth IRA. Should I complete this questionnaire even though they have been withdrawn, and will this ultimately complete form 5329 and other needed forms for me on the backend?
Thanks in advance for the help!
