Hoping to get clarification statement:
You can just report it now and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or box 12 State withholding. Then you must also enter the 2021 1099-R into the 2021 tax return since the withholding is reported in the year that the tax was withheld.
The 2021 code JP will not do anything in 2021 but the withholding will be applied to 2021.
Does this mean that we shouldn't report it now, or just that we cannot ignore the 1099-R next year when we receive it? We know there will be tax withholding reported since we can see it was withheld via our transaction history for the excess contribution withdrawal.
Thank you in advance. This is the first time we've encountered an excess contribution situation and I want to make sure I understand.
