@mmike0 wrote:
Thanks for the reply.
So, TurboTax will only add box2 (should be $2.10) of 1099-SA of 2021 as Other income in 2021 return?
I also have two months excess contribution in 2021. I am planning to withdraw it after 5498-SA of 2020 issued (to avoid confusion). At the end of 2021, I then will receive 1099-SA including withdraw both for 2020 and 2021 excess contributions. Would this cause problem in 2021 return? or should I withdraw 2021 part at the beginning of 2022 (to avoid two withdraw in one 1099-SA)?
Thanks in advance.
I expect you would get one 1099-SA for 2021. It will show the total of withdrawals made during 2021. The earnings should be in box 2 and the distribution code in box 3 should be "2" for excess contributions. I'm not quite what options Turbotax would give you as far as only reporting the 2021 part of the excess. I think that the taxability of the excess contribution will come from the amount of excess contributions you report, rather than the figure on the 1099-SA. But I would say to cross that bridge when we get there.
