Thank you for your quick response. I followed your instructions exactly. I understand I need to taxes on the distribution from my IRA. However, the Roth IRA is still causing a penalty of charge of 6% which carries over to my 2020 taxes. I didn't put anything in deductions about the Roth IRA.
In my form 5329 I found this:
Part IV Additional Tax on Excess Contributions to Roth IRAs. Complete this part if you contributed more to your Roth
IRAs for 2019 than is allowable or you had an amount on line 25 of your 2018 Form 5329. (neither is true as it is a conversion but it continues to show up and I never took anything out in 2018. This started in 2019)
18 Enter your excess contributions from line 24 of your 2018 Form 5329. See instructions. If zero, go to line 23 18
19 If your Roth IRA contributions for 2019 are less than your maximum allowable
contribution, see instructions. Otherwise, enter -0- . . . . . . . . . 19
20 2019 distributions from your Roth IRAs (see instructions) . . . . . . . 20
21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
22 Prior year excess contributions. Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . 22
23 Excess contributions for 2019 (see instructions) . . . . . . . . . . . . . . . . . . 23
24 Total excess contributions. Add lines 22 and 23 . . . . . . . . . . . . . . . . . . 24
25 Additional tax. Enter 6% (0.06) of the smaller of line 24 or the value of your Roth IRAs on December 31, 2019 (including 2019
contributions made in 2020). Include this amount on Schedule 2 (Form 1040 or 1040-SR), line 6, or Form 1040-NR, line 57 25
For Privacy Act and Paperwork Reduction Act Notice, see your tax return instructions. Form 5329 (2019)
[social security number removed]
30,000.
0.
0.
30,000.
30,000.
1,800.
