@dmertz I wish I read this before I amended my return. Please help me on a couple of questions regarding my situation.
I made excessive contribution of $6000 to Roth IRA for 2019 in 2020 and didn’t realize it until December 2020. I had my brokerage firm to remove the excess contribution and associated earning in January, and amended my tax in TurboTax 2019. Then I mailed my amended tax return (passed the electronic transfer window) and paid $360 fine on IRS website. I received my 1099 R of $ 9100 ($6000 + $3100 taxable earning) for this distribution with code 8J and TurboTax is calculating that I need to pay 10% early withdrawal fee to the whole amount. Is this correct? I thought since it was removing excess contribution, it shouldn’t be considered early distribution.
TurboTax 2019 also still shows the $360 fine as the money I owe to IRS. When I transferred information from turbotax 2019 to 2020, It got carried over. I think to avoid it, I just have not to transfer information from TT2019 to 2020 and manually input my information. Is this the right way to do?
