No, you do not want to make up a 1099-R. You will receive a distribution of the excess contribution in the next year.
To account for the excess contribution and pay the penalty in 2021:
- In the Deductions & Credits section of your Federal return, scroll down to Retirement and Investments. Click Show More and click Revisit/Start next to Traditional and Roth IRA Contributions.
- Your Roth IRA should already be selected. Click Continue in the Traditional IRA and Roth IRA screen
- Answer No to Is this a repayment of a retirement distribution?
- Your Roth IRA contributions should already be in there. If not, enter them for 2021.
- Answer No to Switch from a Roth to a Traditional IRA?
- Answer questions on the next two screens regarding your existing Roth IRA
- Enter your excess contributions from prior years. If it is $200 and you maxed out your contribution for this year, you should see your taxes creep up $12
- Do not credit the excess to your 2021 contributions.
