What year(s) do I file a form 1099-R 2020: Removal of excess contribution to Roth IRA in?

Dave8812 · ‎March 27, 2021

I did my habitual Roth IRA contribution in 2019, but then did not end up making enough income to have made a contribution. I realized this in March of 2020. I did a removal of excess (including interest and had them withhold taxes) for my 2019 contribution. I received no 2019 forms for this action.
I have received a form 1099-R for the year 2020 for this action.

I don't know if I need to file this as part of my 2019 return? or my 2020 return? or both.

In turbo tax for 2020 when I enter this, it asks me the question what year this form has on it -

I enter 2020, and then says I may need to amend my 2019 return.

So, what year or years do I need to enter this 1099-R for?

Thank you!

-David

macuser_22 · ‎March 27, 2021

What code is in box 7 on the 1099-R?

Is tax withheld in box 4?

What is in box 2a?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Dave8812 · ‎March 27, 2021

The code in box 7 is: PJ

Yes, there is tax withheld in box 4

Box 2a shows the taxable amount (which looks like it is the amount of interest that was made on initial contribution)

macuser_22 · ‎March 27, 2021

@Dave8812 wrote:

The code in box 7 is: PJ

Yes, there is tax withheld in box 4

Box 2a shows the taxable amount (which looks like it is the amount of interest that was made on initial contribution)

Code P means that the box 2a amount is taxable in 2019, so the 2020 1099-R must be entered into an amended 2019 tax return. The interview will ask what year the 1099-R is for - (2019 or 2020) select 2020.

It makes little sense to have any box 4 tax withheld for a contribution return because tax withholding can only apply to the tax year that it was withheld - (2020) Also enter the 1099-R into your 2020 tax return. The box 1 and 2a will be ignored but the box 4 tax withheld will go on the 2020 1040 line 20b to offset 2020 tax or add to refund.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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What year(s) do I file a form 1099-R 2020: Removal of excess contribution to Roth IRA in?

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