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Retirement tax questions
Yes, that is correct since you removed the 2020 excess after the 2020 extended due date you have a regular distribution (without earnings). You correctly reported the 6% penalty on your 2020 and 2021 returns.
You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Please make sure you include the 2020 excess contributions in your net contributions prior to 2022:
- Login to your TurboTax Account
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen
- Answer all the questions and make sure you enter the net contributions prior to 2022 on the "Enter Prior Year Roth IRA Contributions" screen (include the 2020 excess contribution)
- Answer the remaining question.
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March 12, 2023
5:10 AM