Retirement tax questions

1. Yes, since you did not have any earnings on the excess contribution you do not owe any tax and penalty on the distribution.

2. Yes, you report it on your 2021 return, you do not have to wait for the 1099-R.

3. To create a 1099-R in your 2021 return please follow the steps below:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2021?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution minus earnings)
7. Box 2a enter the earnings of $0
8. Box 7 enter P and J 
9. Click "Continue"
10. On the "Which year on Form 1099-R" screen say that this is a 2022 1099-R.