Hi
I have a Roth IRA account and have made excess contributions to it between year 2013 - 2018.
Last June I file an excess contribution removal form with my custodian and removed all the excess contributions and paid a penalty to IRA.
This year I got a 1099-R for year 2020 with code J - early distribution.
With this code I am going to pay tax on this amount.
My custodian explained this is the correct code because I withdrew money from Roth IRA before age 59.5.
I understand when one makes a legit contribution and takes it out of Roth IRA early, it should be taxed.
In my case, the amount is an excess contribution that shouldn't have been there in the first place. Taking it out is an act of correction.
Is it really considered as an early distribution(Code J) for my situation?
