dmertz
Level 15

Retirement tax questions

There is nothing to report on a substitute Forms 1099-R, so no reason to create any.   The distribution that you received in 2021 is the only distribution that you received and, as I mentioned earlier, the 2021 code J Form 1099-R that you will receive near the end of January 2022 will be reportable on your 2021 tax return to eliminate the excess.

 

Since your first contribution was made for some year prior to 2017 and you reached age 59½ in 2017the amount you took out beyond the $6,500 is a qualified distribution, tax and penalty free.  Nothing you took out of your Roth IRA in 2021 or any additional amounts you take out in 2021 and beyond is subject to any income tax or early-distribution penalty.

 

The sooner you file the Forms 5329 to report and pay the penalties on the excess contribution, the less that the IRS is likely to bill you for interest on these amounts that should have been reported and paid years ago.