The screen titled "Any Excess IRA Contributions Before 2020"
asks: "Tell us if you contributed more money to your IRA than was allowed in 2019 or any previous year"
My situation:
- in 2019 I contributed $750 more to my Roth IRA than I should have based on my MAGI (I discovered this in Feb 2020 while doing the taxes for 2019)
- I withdrew $830 from the IRA in Feb 2020 to cover the $750 basis and the growth on it. I "pocketed" that cash, i.e. I did not recharacterize it or move or transfer it to another IRA.
- I reported this disbursement on my 2019 taxes so that I would not have to amend the 2019 taxes while doing the 2020 taxes in 2021. I basically followed option 2 described in this previous answer by @DanaB27 which references @macuser_22's answer
- As expected, in January 2021, I received the 1099-R form for 2020 telling me that I disbursed $830 (box 1) and that the taxable amount is ~$82 (box 2a). Fox 7 has codes P and J. All others are empty. These are the same values I entered with my FY2019 taxes with the statement that I was paying for them at the time so I would not have to amend my filing now.
So the question are:
1) am I safe in answering No to the question on this screen based on the fact that all previous excesses are settled.
2) do I do anything with the 1099-R form (my guess is no as that is consistent with macuser_22's answer)
Thank you!
