DanaB27
Expert Alumni

Retirement tax questions

You will look at the correct Form 1040 it should have the earnings of $28 (it will round up) on line 4b (taxable amount). 

 

TurboTax will also create Form 5329 and it should show a $3 (rounded up) additional tax on line 4 (10% early withdrawal penalty).

 

Correct you will not have the 6% penalty on the excess contribution because you withdrew the excess and earnings on time. 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"