No, you will use the code P and J. Ignore what it says in the dropdown for code P, there will be a follow-up question about which year is on the 1099-R. You will select 2022 and then TurboTax will treat it correctly.
To create a 1099-R in your 2021 return to report the withdrawal of excess contribution plus earnings please follow the steps below:
- Login to your TurboTax Account
- Click on the "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Answer "Yes" to "Did you get a 1099-R in 2021?"
- Select "I'll type it in myself"
- Box 1 enter total distribution (contribution plus earning) of $7,030.01
- Box 2a enter the earnings of $30.01
- Box 7 enter P and J
- Click "Continue"
- On the "Which year on Form 1099-R" screen say that this is a 2022 1099-R.
You will get a 1099-R 2022 in 2023 with codes P and J for the withdrawal of excess contribution and earnings. Since you are reporting it now on your 2021 return you can ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2022 1099-R into the 2022 tax return since the withholding is reported in the year that the tax was withheld. The 2022 code P will not do anything in 2022 tax return but the withholding will be applied to 2022.
Please see What happens if I made an excess Roth IRA contribution for additional information.
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