This is great- I am trying to digest and will need to re-read it a couple of times. Thank you so much @macuser_22, you are an angel.
A couple of follow up questions though.
- I am assuming your advice to amend 2019 tax filing is for 2020 tax year when I actually get 1099-R, which I will get next year. But, what do I do for my 2019 tax filing that I am preparing right now?
- This is all after tax contributions as I do not meet the income threshold to contribute to Traditional IRA to get any tax deductions. Additionally, when the re-charaterization was made- there were no earnings to report, there was a very small loss-- like less than $20.
It looks like this is not that horrible, I was getting really nervous if I had committed a big mistake that was going to trigger a penalty. This applies to both my partner and I since we file jointly and we both made these incorrect Roth contributions because collectively our income is above the threshold limit.
Here is a different question still somewhat related because I read this also triggers 1099-R
- My partner made excess deferral to 401K accidentally. This was from the job switch in September of 2019. We already informed the new employer in January 2020 and the employer paid back this excess contribution back in March 2020. Now, how do I report this? Someone said I would get 1099-R with P code in box 7 next year- but I should still report this on my 2019 return that I am in process of filing- as if I already have 1099-R.
Looks like I will be getting several 1099-R from these mistakes. Lesson learned- never make a mistake until you do the next time 🙂
Thank you again.
