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Get your taxes done using TurboTax
If you withdraw your 2020 excess contribution to your Roth IRA before the due date of the 2020 tax return, make sure that you also withdraw the related earnings.
On your 2020 tax return, do not report the excess contribution as it has been withdrawn. The earnings have to reported and taxed. These earnings are also subject to 10% early withdrawal penalty.
When you receive the 2021 form 1099-R (in 2022) for this withdrawal, there is no further action needed.
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‎April 5, 2021
10:06 AM