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Why does Roth IRA over contribution show as income? I over contributed $1200.00 and withdraw this in the same year. Why does the full amount shows as income?
I made a $1200.00 over payment to my Roth IRA in 2020. The overpayment plus a small amount of gain was removed in 2021 prior to the tax filing deadline so the withdraw should correct my overpayment in the same year, 2020. I received a 1099-R for 2021 showing the full distribution, $1200.00 plus the gain of $209.71. I would expect that I should only have to pay tax on the $209.71. TurboTax is showing the full $1410.00 as income. Why?
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‎April 3, 2022
11:49 AM