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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.
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‎February 20, 2021
7:01 AM