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Retirement tax questions
Please select code P and then click continue after you entered all information. On the "Which year on Form 1099-R" screen say that this is a 2020 1099-R.
It still sounds like Vanguard made a mistake with their 1099-R Form since the IRS states:
How to treat withdrawn interest or other income.
You must include in your gross income the interest or other income that was earned on the excess contribution. Report it on your return for the year in which the excess contribution was made. (Pub. 590a)
The earnings should be reported in 2019 as well since the excess and earnings were on a 2019 contribution and not in 2020.
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March 10, 2021
5:07 AM