ThomasM125
Employee Tax Expert

Retirement tax questions

@Jcarace5 You would enter the amount of the excess contribution, or $6,000 in this case.

 

In 2021 you will get a form 1099-R reporting the distribution, but you need to report it in 2020 so you can pay tax on any income earned on the excess contribution. You could wait until you get the 1099 form and amend your 2020 tax return, or you could enter the distribution now before you file the 2020 tax return.

 

To report the earnings on the excess contribution, you should enter a Substitute form 1099-R and enter it on your 2020 return. You will see an option for this when you see the screen Tell us Which 1099-R You Have. 

 

Enter in box 1 the distribution amount. In box 2 enter the earnings. Enter code "P" in box 7. Work through the questions in TurboTax after you entered the 1099-R until you see a question regarding why you made the distribution, to which you will respond it was a return of an excess contribution.

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