Return of Excess Roth Contribution

Yes, you will get a 1099-R 2022 in 2023 with codes P and J for the withdrawal of excess contribution and earnings. This 1099-R will have to be included on your 2021 tax return and you have two options: 

You can wait until you receive the 1099-R  2022 in 2023 and amend your 2021 return or You can report it now in your 2021 return and 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.

To create a 1099-R in your 2021 return 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) Box 2a enter the earnings 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.

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2020" you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2021.

No, do not enter anything in boxes 8, 9a, 9b, and 11.