DanaB27
Expert Alumni

After you file

Yes, if you withdrew the contribution plus earnings or recharacterized the contribution by the due date of the 2020 tax return then you do not need to pay the 6% penalty for 2020.  

 

If you withdrew it make sure you enter it on the penalty screen that you withdrew it during the IRA contribution interview.

 

Yes, your earnings from the withdrawal of excess contribution for 2020 will be taxable in 2020. Therefore, you have to enter the 2021 Form 1099-R with code PJ on your 2020 tax return.

 

If you have 2021 Form 1099-R with code R and you reported the recharacterization as mentioned above then you can ignore Form 1099-R.

 

@citizenkoehn

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"