Yavor
New Member

Retirement tax questions

Hi @DaveF1006 

 

I have a similar situation but want to confirm 3 things (below).

 

Summary:

In early 2021 I funded a Roth IRA with $6000 for tax year 2020. Before filing taxes, I realized I had already maxed out my Traditional IRA so I took a return of excess contribution and earning (about $10,400). I applied for an extension and am about to file today. I understand the earnings are taxable in 2020 and I'm trying to include them in my income. 

 

1) I do NOT enter the excess contribution in the deductions section since I removed it (and earnings on it) in a timely manner, correct?

2) What code should I use on the 1099-R I am filling myself (since broker will not send me one until next year) - 8 or T or something else? 

3) Should I enter entire distributed amount (excess contribution and earnings) in box 1 and just the taxable earning in box 2? 

 

Thank you!