In January 2021, I contributed to a Roth IRA, designating it as a 2020 contribution. In March 2021, I discovered that I contributed too much, so I had the excess contribution (plus earnings) withdrawn. TurboTax Online had this message regarding excess contributions designated for the prior year:
"If you made the contribution to your Roth IRA in 2021 (between January 1, 2021 and the 2020 filing deadline without extensions), but you designated it as a 2020 contribution, and you withdrew it in 2021, the Form 1099-R you get will be for 2021. Include the Form 1099-R on your 2021 return. Your Form 1099-R will have a code 8 and a code J in box 7."
However, once I got my 2021 1099-R, it has codes P and J instead though which would require me to amend my 2020 return. I was expecting codes 8 and J based on that guidance from the TurboTax tool and that the earnings would be taxable in 2021. I haven't had success talking with the brokerage. Is the TurboTax pop-up message accurate, and my 1099-R is incorrect? Or do I need to amend my 2020 return?
Any advice is appreciated. Thank you!
