hkc
Level 2

Amend 2020 tax with 1099R

I did an IRA contribution of $720 in 2020 (total earning in 2020), and converted the entire amount to ROTH in 2020.  When I did my 2020 tax last year, I found out I had an excess contribution of $51.  So Fidelity reverted $51 (actual $49.50 due to loss) from ROTH to regular IRA before the tax deadline, and I filed my 2020 tax with the correct contribution amount of $669.  So the $49.50 becomes my 2021 contribution to IRA.  I now received the 1099R for the $49.50 distribution with code PJ, and I understand I need to amend my 2020 tax return.  My questions are: 

1.  Since I actually had a loss instead of a gain, is the amendment necessary?   

2.  How should I do the amendment for the 2020 tax?  Would it be to only include this new 1099R? The 1099R has code PJ in Box 7.  I was over 59 1/2 last year, and have had the ROTH account for over 20 years, so I think the code J for early distribution is wrong.  Do I need to get Fidelity to issue a new 1099R with the code P8 instead?

 

Thanks very much