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After you file
Let's get you straightened out. You know that you put too much money into each IRA. The contribution limit for the year is a ROTH plus Traditional = total allowed. Under age 50 is $6,000, while age 50 and up is $7,000. Income creates phaseouts.
Your ROTH 1099-R has a code R -R—Recharacterized IRA contribution made for 2020 and recharacterized in 2021. Enter the form, no tax consequence, just informational.
Your Traditional IRA - shows a distribution which includes the interest earned on the excess amount. Thus, $168 would be the interest earned. The line 2 is the taxable amount. Enter the form as is. You have a code 2—Early distribution, exception applies (under age 59½). This prevents you from paying a 10% early withdrawal penalty.
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January 15, 2021
12:38 PM