@Confusedtax12345 wrote:
@macuser_22
Thank you. It was confusing because the article said for the example to use code 8 on the 1099R not P.
"John Johnson, age 45, made a $7,000 traditional IRA contribution for 2020 on January 10, 2021....removed it in 2021....
In our example of John Johnson’s $1,000 IRA excess contribution, the contribution was made and removed in the same calendar year and therefore the appropriate distribution code in box 7 of the 2021 IRS Form 1099-R is “8”. "
The wording is confusing. Tax law allows you to make a 2020 IRA contribution *in* 2020 up to the due date of the 2020 tax return which is April 15 (now extended to May 17) 2021. The law treats it as a 2020 contribution made in 2020. Nothing about a 2020 contribution goes on a 2021 tax return.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
