My wife and I are both 74. In March of 2021 we each contributed $4000 to our respective Roth IRA for the 2020 tax year. We subsequently discovered that our contributions were not allowed because we had no "earned income" in 2020. The excess funds were not withdrawn prior to filing our 2021 taxes so we are aware that we will owe the 6% penalty. The funds and the earnings were distributed in February of 2022. What steps to we need to take tax wise to correct this situation. #1. Are the earnings reported in an amended 2020 tax return or on our 2021 tax form. I'm confused since I have read that the earnings are taxable "in the year the contribution was made". the contribution was made in 2021 for the 2020 tax year.
#2 Is the form 10099R made for 2020 or 2021.
