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Retirement tax questions
Recap
1. mail in 1040X with Form 8606 - got it!
2. What's confusing is the code P and 8. I never received a 1099-R with a code P in box 7, just a code 8 in box 7 for 2020. Just want to make sure that I read the publications correctly and your responses correctly - the 2019 excess 401k contribution that was returned to me in 2020 is taxable in year I received it back so in this case, I received the 1099-R for with code 8 in box 7, I report that income on my 2020 tax return - Correct? And since the excess 401K was returned to me before the due date April 15 2020 (later due to covid) and I opened an Traditional IRA with in March of 2020 it will still be considered listed as a nondeductible contribution on my 2019 tax return - CORRECT?
That is why Edward Jones shows Tax Year 2019 Traditional IRA Contribution of $2933 because I opened up the account before the Tax deadline due date in 2020 - CORRECT?
3. I don't think I worded my last question probably. In regards to the 401K excess contribution that was made in 2020 was returned to me in March of 2021. Like I mentioned earlier, the excess amount I placed into my traditional IRA that I opened earlier, so do I report that nondeducitble contribution on my Form 8606 for 2020 because they returned back to me before the filing date of April 15, 2021 or May 17, 2021 (not sure if they extended their deadlines on that? ). My Edward Jone statement shows 2020 IRA Contribution of $4500 .
And in 2022 when I receive the 1099-R for 2021 with Box 7 code 8, that $4500 will be included on my 2021 tax return as income because that is the year it was returned to me - CORRECT?
Hopefully these are last questions for ya. I am truly sorry, please be patient with me. I am trying to read the publications and comprehend what they saying and also what you are saying as well. I just don't like to have answer and be done with it. I wanna make sure I good understanding of it.
Thanks
Lisa