Hi @macuser_22. After reviewing your posts and my tax situation further, I have some follow-up questions. I've included the 2019 & 2020 breakdowns below to help you answer them.
Questions:
1. I cited all $6k for 2019 & $6k for 2020 as excess contributions on the excess return form, but some was actually allowable based on the numbers above. I presume this will make it to the 1099-R.
a. Should I update this with my brokerage account? Or, will the TurboTax software know to adjust what I owe based on my MAGI coupled with the questions they ask and how I answer?
b. Does it matter that the withdrawal of allowable contributions + associated earnings were made on the excess contribution form? Would this cause an issue with turbo tax or the IRS? Would another form need to be filled out?
2. For 2019 earnings from allowable + excess contributions: will that be added to my AGI for the 2021 tax year b/c that's when the distribution occurred and the 2019 tax deadline to withdraw excess earnings expired?
3. For 2020 earnings from allowable contributions: will that be added to my AGI for the 2021 tax year since that’s when the normal distribution occurred (even though it was initiated by the excess contribution form)?
4. For 2019 & 2020 early withdrawal: when will the 10% penalty be paid and why?
