@DanaB27 Correct, both contributions (made in 2020 and Jan 2021) were towards the 2020 roth IRA limit.
Regarding 1099-R I received 2 forms in Jan 2022 with year as 2021 on the forms. One has codes PJ with distribution+earning with early withdrawal penalty for excess contributed during 2020, the other 1099-R has codes 8J with distribution as the excess amount made in Jan 2021 toward the 2020 limit. Since all withdrawals from Roth and earnings income was received in 2021, I had only entered 1099-R data in my 2021 tax return since I received these forms in 2022.
Is below correct steps to resolve this issue:
- My current 2020 tax return doesn’t have 1099-R or Form 5329. Do I amend 2020 return and just add the 1099-R form with PJ codes?
- I had already indicated in my 2020 tax return that I withdrew the 2020 excess from roth by the due date In the Roth IRA contributions Worksheet with this return:
- Line 19 mentions total contribution and line 25 – contributions withdrawn by due date has total excess amount contributed listed
- Line 26: Excess Roth IRA contribution credit is also showing blank in above roth worksheet
- Next, I need to amend 2021 tax return to only include the 1099-R which has the 8J codes and remove only the 1099-R with PJ codes from this return?
