It's quite likely you will receive a Form 1099-R in 2022 if you actually removed the excess in 2022 before filing your 2021 tax return as indicated. You must report those earnings in 2021 (with or without a Form 1099-R). Use code 8, in Box 7.
- 8 – Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2021
Next year, when you receive the Form 1099-R for this same distribution, there should be a code P, which will show that the distribution was already included and taxed in your 2021 tax return. The result should be nothing taxable in 2022.
- P – Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2021 (it will be changed from 2020 to 2021 for 2022 tax year)
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