We are taking the excess contributions and earnings on those contributions in 2021 out of the Roth IRA before the tax deadline of April 18, 2022. This has already been done. Here's what I found online:
Withdraw the excess contribution before filing your tax return. The IRS treats this as though the contribution never happened, and no 6% penalty will apply. You must also remove any earnings on the investments during that time period. The earnings must be included in your income, and you will have to pay income taxes on them. If you are under age 59 ½ you will also need to pay a 10% early withdrawal penalty, but only on the investment earnings attributed to the excess contribution.
We are over age 60, so there should be no penalty for early withdrawal. We just have to pay taxes on the earnings. Next January we will receive a 1099-R with all of this info on it, but we need to report it now on our 2021 return.
So, the question remains -- Do we have to make up a 1099-R for this, or can we just put it in "Other Income"?
