DanaB27
Expert Alumni

Retirement tax questions

First, since you removed the excess contribution for 2021 plus earnings before the extended due date of the 2021 return and the excess contribution plus earnings for 2022 before the due date you will not have to pay the 6% penalty. Please see Pub 590-A Withdrawal of excess contributions for details.

 

You should have received two 2022 Form 1099-R:

One for the excess contribution plus earnings for 2021 with codes PJ in box 7 (belongs on your 2021 return). The taxable earnings will be listed in box 2a.

One for the excess contribution plus earnings for 2022 with codes 8J in box 7 (belongs on your 2022 return). The taxable earnings will be listed in box 2a.

 

After you enter the Form 1099-R on your return TurboTax will automatically calculate the 10% early withdrawal penalty on the earnings if you are under 59 1/2 (if you are over 59 1/2 enter the amount of earnings under "Another reason" on the "Did you use your IRA to pay for any of these expenses?" screen).

 

Please see How do I amend my federal tax return for a prior year?

 

@nibroc22 

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