Hello,
I have a question regarding excess IRA contribution.
I have contributed $4,500 to my Traditional IRA and $2,500 to my Roth for tax year 2020. As you can see there is $1000 excess contribution. I am 34 years old. I already ask my brokerage firm to withdraw that $1,000 (from Roth IRA) and about $300 earning (gain) to avoid 6% excess tax. As I know my brokerage firm is going to issue 1099-R in 2021.
Kindly advise how should I report $1000 distribution and $300 earning in my 2020 tax return. (considering the fact that I am going to receive 1099-R in 2021)
Thank you for your help in advance.
Rafayel
