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Retirement tax questions
You wouldn't have to enter the contribution on your 2020 tax return if you withdrew the funds by the due date of the tax return. You should receive a form 1099-R with code 8 in box 7 that will indicate that it is a return of excess contributions, so it won't show as taxable on your tax return.
You will need to enter any income earned on the money as taxable income on your tax return, in the appropriate category (interest, dividends, capital gain, etc.)
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‎February 18, 2021
2:19 PM