- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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.
- Click on the "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Answer "Yes" to "Did you get a 1099-R in 2020?"
- Select "I'll type it in myself"
- Box 1 enter total distribution (contribution plus earning)
- Box 2a enter the earnings
- Box 7 enter P and J
- Click "Continue"
- On the "Which year on Form 1099-R" screen say that this is a 2021 1099-R.
- After you enter all 1099-Rs on the "Your 1099-R Entries" screen click "continue"
- 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.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
May 13, 2021
7:09 AM