@KREC wrote:
I am removing an excess contribution I made on a Roth IRA in 2018. I’ve already paid the 6% in 2018, 2019, and 2020 using the 5329 on my tax filing. I will not need to pay the 6% for 2021 since I am removing the excess before the end of the year. I am only removing the excess contribution and no earnings so I should have no tax or penalty due. Here is my question, When the financial firm issues the 1099R what code will they use to show the return of the excess?
It should have a code J in box 7 since it can only be removed now as a normal distribution.
**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.**
