Thanks, @macuser_22.
Where I think some of the confusion lies is with the wording of Publication 590-A, which says “The earnings are considered earned and received in the year the excess contribution was made”. If interpreted literally it would mean earnings returned on excess contributions made in 2020 but attributed to 2019 would be associated with 2020. I think that’s where the brokerage firms and others like myself are being tripped up.
So if your conclusion that “a 2019 contribution made *in* 2020 is still a 2019 contribution so the 2019 excess rules apply and not the 2020 rules.” is the correct way forward, I do have some additional questions:
1. Since this has caused confusion for so many, I’m just curious how you were able to get clarity on this over the years. Is it just experience filing similar returns, interacting with the IRS, etc.?
2. Do I need to contact my brokerage firm to update my 1099-R? In other words, does the IRS care if what I report in my amended returns differs from what my brokerage firm reported in the 1099-R b/c they will differ and I’m concerned this will spell red flags for them (a rejected return and/or an audit). I also imagine I’ll need to make good use of the interview section as well.
