If I need to remove excessive contribution on my Roth because of the AGI has just reached the range of reduced amount, the allowed contribution will vary based on my income (of final income).
Assuming I will do the excessive removal in early 2021 (on a 2020 contribution) before I file my tax return in April 2021 for the Tax Year 2020. I will also have a Net Income from return of investment on the excessive contribution.
If this Net Income (or additional income to be determined) is to be reported in the next year (Tax year of 2021, then my AGI for 2020 does not change and I can calculate the amount I need to remove from my Roth contribution ( in regardless of what the Net Income amount would be).
However, if the Net Income needs to be reported in Tax Year 2020, it will increase my AGI and therefore, readjust my allowable contribution and I would not know the exact right amount to be "remove". Like going into a loop.
Would you clarify what is the right way to report it with Turbo Tax ? I would not know how the IRA Custodian would label P, J or the code for my 1099R at this point.
