1) In July 2020, I made $ 6000 Roth IRA contribution for year 2020. When I was working tax return 2020 in April 2021, I have realized I should not have done it because of my AGI . I requested my financial institution to sell excess + earnings from roth so the excess gets nulled out. Sell was completed on trade date May 17th, settlement May18th. 2021. I have submitted tax for year 2020 with an answer " no " to the question " did you have any excess contributions.
In March 2021, I also contributed $ 6000 roth for year 2021. I have requested this to be recharacterized from Roth to traditional in June 2021. (total $ 6302.83 = $ 6000 + gain 302.83 )
Now for the tax 2021, I have received two 1099-R. One of them is showing gross distribution (box 1 ) 7,200 , taxable amount (box 2a ) 1200, and distribution code (box 7 ) PJ. The other one is gross distribution (box 1) 6302.83, taxable amount ( box 2a ) checked mark for 'taxable amount not determined'. distribution code (box7 ) N.
2) my husband also had the similar situation, except he only needed to withdraw excess from the roth account since he realized 2020 contribution was too much. His financial institution executed Sell of contribution + excess on td 05/17/2021, settlement date 05/18/2021 just like mine. He has received one 1099-R, which shows box 1 and 2a and distribution code J. P.
all of the 1099-R is showing year 2021 on the top and, I would assume all need to be added for 2021 tax form. I believe I still need to submit amendment form for 2020. and if so, how can I reflect these transactions correctly for both years? Also, filing deadline was 05/17/2021 for tax return 2020. My roth was sold on 05/17 but did not settle till 05/18. Was I wrong to say "no" when Turbotax was asking a question about excess contributions? ( should it be trade date or settlement date base ? )
please advise. thank you very much
