I have read through the entire thread – many thanks to all contributors! This is my situation and intended actions….do I have this correct and please see my questions below.
I have not submitted my 2021 tax return. I have excess ROTH contributions made during 2021.
This is what I intend to do……
Enter information into TurboTax of my $7,000 contribution made on Jan 7 2021
Minimal 2021 earned income resulted in $6,498 being an excess 2021 Roth contribution
There is a Roth LOSS from 1/7/21 until date excess contribution withdrawn 3/14/2022 based on IRS’s NIA (net attributable income) formula
Under Personal/Deductions & Credits / Traditional and Roth IRA Contributions I will follow the TurboTax steps
Select Roth IRA
Enter $7,000 as Roth Contribution for 2021
Tell us if you contributed more to a Roth IRA than was allowed in 2021 – YES
Your excess Roth IRA contributions – enter $7,000
Roth Value on 12/31/2021 - enter $< value>
You have an Excess contribution of: $6,498
Contribution withdrawn before due date of you return - NOT CLEAR ON WHAT AMOUNT TO ENTER??? QUESTION: is the withdrawn amount the Net figure = total contribution less the Roth loss based on the NIA formula ($6,498)? OR the total contribution of $7,000??? I assume the net figure, but it is not clear to me based on the Turbotax question posed.
The above turbtax prompts precede entering the 1099-R as indicated below. This discussion thread does not seem to address the above trubotax prompts.
I will Manually submit a “2022 1099-R” with my 2021 return consisting of the following:
Box 1 enter $6,498
Box 2a enter $0
Box 7 enter J and P
QUESTION: is the foregoing correct?
