The moment of truth has arrived a year later and I am flabbergasted.
I finally withdrew my excess roth ira contribution in 2021. This year, I received a form 1099-R for 2021 for this withdrawal. The distribution code is "J8" (this differs from some other info I've read indicating the code should be "JP").
After entering this in Turbotax, I'm still seeing a 6% penalty on my Form 5329 :( I believe this is happening because in Part IV line 20 of that form, it lists my 2021 distributions as "0". I think this is wrong - it should be the amount that I withdrew, and if that was filled out, then I would not have the 6% penalty.
I called for live tax help and was told that the penalty will be removed next year instead. However, this reply from last year contradicts that, and what I see in Form 5329 Part IV Line 20 also seems to line up with last year's reply. Can someone help a confused and tired soul please?
