@ dmertz, thank you so much for your generous help. I "assume" $3398 has $1000 gain. Here are my entries on 1099-R
1. 4398
2a. 1000
2b. which box to check? "total distribution"
3. Capital Gain (included in box 2a). ???
4. Federal income tax withheld: 0 (vanguard didn't withhold fed or state)
5. employee contribution: ???
6. net unrealized appreciation: ???
7. select codes: J - early distribution from a Roth IRA
P - return of contribution taxable in 2020 (should it here be 2021? or it implies the return of $1250 contribution)
the rest of boxes all unchecked.
The next page is "based on the code you entered in box 7, you are paying extra tax on this money", I click "continue"
Which year on form 1099-R? A: 2022
Before this 1099-R entry, her Fed tax due was $471, now it jumps to $622. I sort of understand your earlier suggestion of moving $1250 plus earning from 2021 out, and roll back 2020's $1250 for year 2021...
Anyway, are the above entries for 1099-R correct?
Thank you so much for your time!
