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Retirement tax questions
I'm confused now by your comment:
The 1099-R instructions are more clear for reporting the excess. The return of excess Roth contribution in 2020 requires a 1099-R with a code PJ in box 7 that means "taxable in 2019". The taxable amount is in box 2a which is the earnings. That can ONLY be reported on a 2019 tax return.
I thought I wasn't reporting any earnings for my 2019 allowed or excess contributions on my 2019 amended return b/c the 2019 tax deadline had already past (e.g. the excess correction form that triggered the distribution of all contributions + earnings for 2019 & 2020 was completed in Jan 2021). Thus, the distribution of 2019 earnings in 2021 would be taxed in 2021 as income. Also, I amended my 2019 federal & added my 2019 allowed + excess contributions, which figured out the 6% penalty, which I sent in as a check w/ it. I'll then pay the same 2019 6% penalty once more on my amended 2020 federal since 2019 excess contributions weren't removed before Dec 31 2020.
Also, the other question I posed was does my brokerage firm need to update my 1099-R to reflect the guidance you're giving me? What Fidelity is reporting is at the top of my original post.