I had excess contributions for 2018, 2019 and 2020 which were all removed in 2020 as follows:
2019 contributions - 4/29/2020 - 7559.20 (559.00 earnings)
2018 contributions - 6/15/2020 - 6500.00 (original contribution - excess was 6060.00 and I realize that after I removed it)
2020 contributions - 12/11/2020 - 2887.76 (733.79 earnings)
In 2020:
a) I filed 2018 1040X in 2020 prior to the extended tax deadline to pay the 6% tax
b) I filed substitute 1099-R with 2020 return for 2019 excess contribution removed in 2020.
c) I filed 5329 with 2019 return for 10% penalty on 2019 earnings and 6% tax on 2018 earnings
I received a 2020 1099-R listing each of the contribution removals listed above.
I have added the 2020 withdrawal on a 1099-R in 2020 return
Questions:
- How do I report 2018 excess contribution removal in 2020. If I enter a 1099-R for 2018 separate from the 2020 removal, TT taxes me - why is that - it doesn’t ask me what year the withdrawal was.
- On Form 5329 for 2020 - are the following amounts correct?
- line 18 shows 6060 (the amount of excess),
- line 19 shows 7000 (assuming because I didn’t make any contributions for 2020).
- Line 20 is blank (shouldn’t this be 6500, the amount I withdrew in 2020)
- Line 22, 24 and 25 show zero
- Do I need to report anything else on 2020 return for 2019 contribution withdrawal.
