I am still confused after reading the many responses in this forum. I, too, contributed excess Roth IRA contributions for 2021. I have not yet filed my 2021 return. My financial institution has been notified and is withdrawing the excess contributions and earnings.
My Roth contributions were entered under Deductions & Credits. During the interview process I also stated that the contributions were withdrawn before the due date. I then completed a 1099-R giving the contributions, earnings, and codes PJ. Since I am now 59 and 1/2, I entered the contributions and earnings in the "another reason" box to avoid the 10 percent withdrawal penalty on the earnings. However, Turbotax is still issuing me a 6 percent penalty on the contributions - from schedule 2 line 21 (referenced by form 5329). I don't know what else I can do to tell Turbotax that the original contribution was withdrawn. Do I not even report the contribution to begin with, and instead just enter the 1099-R? Thank you.
