DanaB27
Expert Alumni

Retirement tax questions

Yes, it will be code PJ for the 1099-R since it isn't a qualified distribution but you are able to enter the age exception during the interview to avoid the 10% early withdrawal penalty. Also, on a 2021 1099-R  code P would mean taxable in 2020. TurboTax will ask after you enter the 1099-R what year it says on the 1099-R.

 

  1. Click on the "Search" on the top right and type “1099-R”
  2. Click on “Jump to 1099-R”
  3. Answer "Yes" to "Did you get a 1099-R in 2020?"
  4. Select "I'll type it in myself"
  5. Box 1 enter total distribution (contribution plus earning)
  6. Box 2a enter the earnings
  7. Box 7 enter P and J 
  8. Click "Continue"
  9. On the "Which year on Form 1099-R" screen say that this is a 2021 1099-R.
  10. After you enter all 1099-Rs on the "Your 1099-R Entries" screen click "continue"
  11. On the screen "Did you use your IRA to pay for any of these expenses" use "another reason" and enter the taxable amount from box 2a.

 

 

A contribution made in 2021 for 2020 is deemed to be have made on the last day of 2020 and therefore all earnings from a withdrawal of excess contribution should be reported on the 2020 tax return. 

 

@SLYKTAX 

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