DanaB27
Expert Alumni

Retirement tax questions

Yes, the $2,000 withdrawal of excess contribution plus earnings will be on your 2020 tax return (amended) and you get a 1099-R 2021 in 2022 with codes P and J.

 

To avoid the 6% penalty you will have request another withdrawal of excess contribution plus earnings to eliminate any excess contribution on your 2020 tax return when you close your account before the due date.

 

Then you will have to include the earnings on your 2020 return but if you remove the whole contribution and earnings because you are closing the account then this will eliminated the 2020 Roth contribution completely and you will not have any issues.

 

 

 

 


 

 

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