@aquarover wrote:
As a follow-up, I have also read online in a few places that filling out a "fake" 1099-R for this year is both unnecessary and problematic. Problematic because I would be submitting a mostly blank form which may flag an audit, and unnecessary because the 402(g) form states I need to report the $2,000.97 this year as income, but not the specific way to do so, and the easiest way would be submit it as "Miscellaneous Income". The only downside is that to report Miscellaneous Income, I need to upgrade to the Deluxe version of TurboTax. Does this make sense? I still don't know what exactly to do!
Your 2019 designated Roth contribution is after-tax so the returned contribution amount does not get reported at all on your tax return. If the earnings were returned in 2020 then yiu will receive a 2020 1099-R to go on your tax return next yer to report the taxable earnings in the year returned.
For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
