@taxgal428 wrote:
Do know if I have to send in the entire tax return or just the Form 8606?
Now for the 2020 tax year, I again had 401K excess contribution of $4500 that they paid back to me in March of 2021 and I put that into the same Traditional IRA account. Since my income is over the limit and I am covered on 401K work, wouldnt I include the $4500 on the 2020 Form 8606 line 1 as nondeductible contribution?
You mail the 1040X and 8606 if that is all that changed.
A 2020 excess returned in 2021 will be reported on a 1099-R with a box 7 code P taxable in the year contributed. You should also get a 1099-R with code 8 for any earnings that were returned - that is taxable in the year returned.
If you made a 2020 non-deductible Traditional IRA contribution then it is reported on line 1 of a 2020 8606 form.
**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.**
