My AGI for both myself and spouse is over the limit and we have both contributed $6000 in Fidelity Roth IRA accounts for 2020 and are not eligible for contribution at all given large influx of bonus at end of year. We have requested to withdraw contributions for 2020 (with earnings) to our bank account and have received confirmation letter from Fidelity at this time. The letter indicates the amount of earnings as well as 6K contribution with total amount for both accounts.
My question is how do I report this on my 2020 tax return before receiving a 1099-R in January 2022 as indicated by Fidelity? I want to avoid filing an amended return after receiving this 1099-R (in 2022) and want to make sure that I correctly add earning details into TurboTax to report this gain for the 2020 tax year. I am NOT over 59 1/2 so am expecting the 10% penalty on earnings for this year... just not sure how to report it correctly in TurboTax.
Also, are there any additional forms (IRS Form 5329, etc.) that need to be filled out outside of prompts within the tax software I need to be aware of as I work to report this transaction in 2020?
I have seen similar postings in forum, but want to make of the correct process.
Thanks!
