@Opus 17 wrote:
Should the customer wait until the 1099-R is issued on January 31, 2021, to submit the forms 5329 for 2014 through 2018?
If the customer has not filed their 2019 tax return, what do they do about the excess 2019 contribution removed in January 2020?
The 5329's for the 2014-2019 years is not connected to the 1099-R for the prior years excess distribution. The 5329 is required because it was not timely removed. When (or if) it is removed anytime in the future does not change what is reported on the 5329 form for each year that the excess remained at that years end.
Only the 2019 contribution removed in 2020 before the due date requires a 1099-R.
It is possible to enter a "dummy" 2020 1099-R into 2019 to avoid having to amend 2019 when the 1099-R comes but ONLY if they know for sure the code that will be JP in box 7 and the exact amounts that will be in box 1 and 2a.
**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.**
