@macuser_22
Hi, I need some help as well on this. This is my situation.
1. Overcontributed in 2019 by $9,444 ($4,722 or me and $4,722 for my wife).
2. Overcontributed in 2020 by $12,000 ($6,000 for me and $6,000 for my wife).
3. Amended 2019 and 2020 returns with the 1040-X and 5329 forms and paid the 6% penalty for both years ($566 for 2019 and $1,286 for 2020)
4. Withdrew the excess $10,722.00 from both of our Roth IRA's in December 2021 ($21,444.00 total between the two IRA's).
5. We both received 1099-R forms for 2021 from Fidelity. Only boxes filled out is box 1 for $10,722.00 and box 7 with code J.
When I went to import these into TurboTax it dramatically lowered the refund I was due. My understanding is if you take the money out, you only pay the 6% penalty and not any early withdrawal when you remove the excess contribution from the IRA's. So my understanding is the IRA withdrawal in 2021 should have no impact on my 2021 taxes. Any help on how I should enter these 1099-R's would be greatly appreciated.
Thanks!
Steve
