DanaB27
Expert Alumni

Get your taxes done using TurboTax

Yes, you can include a Form 1099-R for the withdrawal of excess contribution now to avoid amending it. As mentioned by awesome expert FangxiaL this transaction will not be taxable since you did not have any earnings but you will enter it into TurboTax to report the distribution.

 

To create a 1099-R in your 2021 return please follow the steps below:

  1. Login to your TurboTax Account 
  2. Click on the "Search" on the top right and type “1099-R”
  3. Click on “Jump to 1099-R”
  4. Answer "Yes" to "Did you get a 1099-R in 2021?"
  5. Select "I'll type it in myself"
  6. Box 1 enter total distribution (contribution minus loss)
  7. Box 2a enter $0
  8. Box 7 enter J and P
  9. Click "Continue"
  10. On the "Which year on Form 1099-R" screen say that this is a 2022 1099-R.

 

Please make sure, that you entered that you withdrew the excess contribution amount on the penalty screen during the IRA contribution interview to avoid having the 6% penalty calculated. Please make sure you enter the full contribution amount as withdrawn in this section.

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “IRA contributions”
  3. Click on “Jump to IRA contributions"

@Anonymous
 

 

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