Hello,
Need some help understanding if the 1099R form is correct.
We contributed excess to Roth in Year 2020 for 2 separate accounts. We are both UNDER the age 59 1/2.
Account 1: excess of 4800$ and earnings of 728$ and
Account 2: excess of 6000$ and earnings of 1944$ .
Realizing that at the end of Dec 2020, we filed the form to withdraw the excess and the earnings for both accounts in Jan 2021 and the withdrawal was complete by Feb 2021 which was before the April 2021 tax deadline to avoid the 6% penalty. We did not mention anything in the 2020 tax return and instead opted to wait for the 1099-R which was sent in Jan 2022.
Now Jan 2022 we get a 1099-R for both the accounts.
Account 1 : Shows the code as 8J (Taxable in 2021 return),
Account 2 : Shows the code as PJ (Taxable in 2020 return).
The columns 1 and 2a in both forms are accurate.
My understanding was Account 1 codes should have also been PJ instead of 8J.
Why would they give a code 8J to be taxable in 2021 return, as excess and earnings were withdrawn Feb 2021, before the tax deadline of April 2021. I thought that would also be taxed on the 2020 via an amended return
