dmertz
Level 15

Retirement tax questions

Leaving things as they are with the March 4 distribution used to satisfy the excess contribution, I'll address the remaining questions that you posed earlier:

 

5.  Correct.

6 and 7.  Since the return of $3,398 of the contribution made for 2021 occurred in 2022, you'll need to enter the code JP 2022 Form 1099-R as if your daughter has already received it, making sure to tell TurboTax, when asked that its a 2022 Form 1099-R.  It will show in box 1 $3,398 plus earnings and in box 2a just the earnings.  TurboTax will include the earnings on Form 1040 line 4a and on Form 5329 line 1.

8a.  "Enter Prior Year Roth IRA Contributions" is asking for the amount of contributions made for years prior to 2021, $1,250.

8b.  "Enter Excess Contributions (Your Excess Roth IRA Contributions for Prior Years )" is asking for excess contributions made for years prior to 2021, again $1,250.

8c.  "Contributions Withdrawn Before the Due Date 4/18/22" is asking in regard to contributions made for 2021, $3,398 only.

The rest of your answers to TurboTax's questions are correct.