dmertz
Level 15

After you file

When preparing your 2020 tax return, when TurboTax indicated that  you had a $360 excess contribution (are you sure that  the excess contribution wasn't $6,000 and $360 was the penalty?) should have told TurboTax that you will remove the excess contribution before the due date of your tax return and that the amount of contribution returned will be $360.  That would have eliminated the excess contribution on the Form 5329 and, absent any other reason to file 2020 Form 5329, the Form 5329 would have been omitted from your 2020 tax return entirely.

 

It seems that you need to amend your 2020, and 2021 tax returns (and your 2022 tax return if you already filed that with Form 5329 still showing the excess contribution to make the corrections to remove the penalty on Form 5329.  You'll need to prepare the Forms 5329 outside of TurboTax so that you can explicitly show zeros where the originals showed nonzero amounts.  You'll file each of these with Form1040-X showing the reduction in your tax liability and providing the explanation that the excess 2020 contribution of $360 was properly returned in March 2021.

 

Since there was an attributable investment loss, the 2021 code PJ Form 1099-R that you received does not need to be entered since it would be reflected nowhere on your amendments.