Hello,
This thread is very helpful to me in my current situation. Thank you so much!
I also over contributed in 2020 for 2020 tax year. I withdrew after filling 2020 taxes but I did withdrew before the filing deadline. I received 1099R in Jan 2022, this year! I have a few questions if you can help answer them.
1] I understand the earning will be taxed but can I report this earning as a 2021 income since I actually didn't cash it or withdraw until May 2021? I am afraid if I amend my 2020 tax return, the gross income for 2020 will increase again and the whole "bad " cycle will start again, and amount needed withdrawing from Roth contribution for 2020 will need to recalculated. This is a nightmare! Why do I have to report the earning receive mid year 2021 on 2020 tax return in this situation?
2] I did withdraw the excess amount after filing 2020 tax but I completed the withdrawal before the general 2021 filing deadline, I'm assuming I dont need to pay the 6% penalty?
3]how do I pay the 10% penalty on the earing part as a early withdraw penalty? I cannot get turbo tax to add this penalty to my 2021 tax return.
Thanks,
Kelly
