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Get your taxes done using TurboTax
If you withdrew an excess contribution for 2020 plus earnings in 2021 you should have gotten Form 1099-R with codes P and J. You might have to contact your financial institute to correct your Form 1099-R.
The IRS states:
“You must include in your gross income the interest or other income that was earned on the excess contribution. Report it on your return for the year in which the excess contribution was made.”
Also, if you made the contribution in 2021 for 2020 then you are deemed to have made the contribution to an individual retirement plan on the last day of 2020. (26 U.S. Code § 219 (f) (3))
Therefore, your earnings are taxable in 2020 and your Form 1099-R should have codes P and J.
@ tdc2022
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March 30, 2022
4:05 AM