A 2021 Form 1099-R that includes code P (along with code J for a Roth IRA) in box 7 must be reported on your 2020 tax return if the form has a nonzero amount in box 2a. When entering this form into 2020 TurboTax, TurboTax will ask if the form is a 2020 or a 2021 form. Answering that it is a 2021 form will cause TurboTax to include the amount from box 2a as taxable income on Form 1040 line 4b and on Form 5329 line 1 as an early distribution.
If this form has a zero in box 2a or the box is blank, there is no need to amend your 2020 tax return to include this income.
