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Retirement tax questions
You enter the amount that is on the Form 1099R in that field. Only deal with the Form 1099R amount. Box 2 on the Form 1099R is handling the Earnings.
Please follow these directions from @DanaB27
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.
You will have an 10% early withdrawal penalty on the earnings.
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March 11, 2021
10:00 AM