Yes, since you withdrew the excess contribution plus earnings you won’t have the 6% excess contribution penalty.
The withdrawn excess contribution will not be taxable, but the earnings (reported in box 2a) are taxable income and are subject to the 10% early withdrawal penalty if you are under 59 ½.
Distributions must be reported on your tax return even if it isn’t taxable. You can see the IRA distribution amount in line 4a of Form 1040 and the taxable amount on line 4b.
- Login to your TurboTax Account
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
To preview Form 1040:
- Click on "Tax Tools" in the left menu
- Click "Tools"
- Click "View Tax Summary" in the Tool Center window
- Click on "Preview my 1040" on the left
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
