a)When you enter your Roth contributions it gives you the option on the “You have currently a penalty” screen to enter how much of the excess contribution you withdrew. Please enter the whole amount contributed in the Roth IRA contribution interview and then enter the amount of excess contribution withdrawn (no earnings).
b)Yes, you will have to report the distribution of the excess contribution and earnings. Please follow these steps to create 1099-R:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R”
- Select "I'll type it in myself"
- Box 1 enter total distribution (contribution plus earning)
- Box 2 enter the earnings
- Box 7 enter P and J
- On the "Which year on Form 1099-R" screen say that this is a 2021 1099-R.
c)You will have an 10% early withdrawal penalty on the earnings.
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