DavidS127
Expert Alumni

Retirement tax questions

  1. Yes, for your withdrawal of a 2019 excess Roth contribution, part of the IRS requirement is that any earnings (or loss) associated with that excess contribution also be removed.  Your trustee should take care of that for you when they remove the excess contribution.
  2. If you extend, it just allows more time to get the excess contribution out of your Roth in compliance with the "treat it like it never happened" goal.  You'll still get a 2020 1099-R, and if that 1099-R has earnings in box 2a, you'll need to amend the 2019 tax return to report that interest income. 
  3. No, amending your tax return for just the investment income on your excess contribution won't impact your 2020 tax return.  Click this link for instructions on how to file an amended return with TurboTax.

@kapsabhi

 

 

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