Retirement tax questions
@pcarlson9 wrote:
The problem seems to be with TT not updating the program code for the 5329 for 2020. P is telling the program it is a 2019 excess contribution instead of a 2020 excess contribution. Until they correct the program code this will keep happening. I was on the phone with them last nite and they are suppose to be working on it.
I found others who have encountered the problem in the discussion boards.
TurboTax is correct as it is.
Code P advances the year by a 1 every year. For a 2020 1099-R with a code P it means taxable in 2019, for a 2021 1099-R code P, it means taxable in 2020. That is why TurboTax has a screen that asks which year the 1099-R is for. When you choose 2021 it becomes taxable in 2020 and the 1099-R box 2a amount will go on the 2020 1040 line 4b.
