I am over 59 1/2. Made a 2021 IRA contribution. Later found out it is not deductible. However, it is not an excess contribution. It is my understanding that I can remove the non-deductible contribution before filing my 2021 return (thus avoid my heirs having to deal with basis), but the entire gain must be reported as income on the 2021 return even though the return of contribution is not happening until 2022. To further complicate things, there actually is a loss - not a gain. How can I report the removal and the loss in turbotax. And then of course, I'll get a 1099R next year that I'll have to deal with. My IRA custodian says I should do the return of contribution as a return of excess; a call to the IRS says that is incorrect because it's not excess.
