The excess IRA contribution was made in tax year 2020.
The gain/loss, on the excess contribution, HAS to reported in the tax year it occurred, i.e. 2020 return. My broker WILL NOT issue the 1099-R until the following tax year, 2022. However, when funds are removed from my IRA, broker will show the excess contribution removed PLUS the gains in tax year 2021. These gains have to be reported for 2020 tax return. IN 2022 a follow on 1099-R will be reported for 2020.
Where in TT do I report these gains as taxable income? I do not and will not be issued a 1099-R. The broker will issue the 1099-R in 2022 with a P.
I appreciate your help but you keep referring to a 1099-R. A broker cannot report a 1099-R after the close of the tax year.
So in conclusion, I need to report the taxable gain on my 2020 return without a 1099-R being issued. My major broker said the 2022 1099-R will show the excess contribution + gain with a P. IRS will see the gains reported in 2020 as taxable income and the excess contribution which is not taxable and the 2 will coordinate.
