DanaB27
Employee Tax Expert

After you file

You do not need to file Form 5329 Part IV for the excess contribution on your 2020 tax return since you withdrew the excess plus earnings before the due of the 2020 tax return.

 

But you will file Form 5329 Part I if you are under 59 1/2 for the 10% early withdrawal penalty on the distributed earnings from the withdrawal of excess contribution plus earnings. All you have to do is enter your Form 1099-R and TurboTax will create Form 5329.

 

If you are over 59 1/2 then you can avoid the 10% early withdrawal penalty by entering the distribution on the "Did you use your IRA to pay for any of these expenses?" screen and entering the distribution amount under "Another reason". 

 

 

@kcottrel

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