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Retirement tax questions
@Confusedtax12345 wrote:
I'm in a similar situation. Made a roth contribytion for 2020 in January 2021. It was an excess contribution. I withdrew it and gain. Do I report it in 2021 or 2020?
I found this online: https://www.wolterskluwer.com/en/expert-insights/ira-reporting-excess-contributions-and-recharacteri...
It says report in 2021 is this wrong?
Thank you!
That article does not say to report it in 2021 - it says: If a contribution is made during one calendar year but removed in the following calendar year (before the tax-filing deadline, including extensions), report using Code P. And code P on a 2021 1099-R means "taxable in 2020". (A Roth will have code JP - J meaning Roth).
If a 2020 contribution returned in 2021 as a "return of contribution and earnings" then it will be reported to you on a 2021 1099-R box 7 code PJ that means taxable in 2020. It would be entered on your amended 2020 tax return when you receive the 1099-R next January.
Entering a 2021 code JP in the 2021 TurboTax will tell you to amend 2020.