1) If you made an excess contribution for 2020 and did not remove it by the due date of the extended 2020 tax return then you will have to pay the 6% penalty on your 2020 tax return. If you removed the excess plus earnings in 2021 before the due date then you should have gotten a 2021 Form 1099-R with codes P and J, and this belongs on your 2020 tax return. Only the earnings will be taxable in 2020 and subject to the 10% penalty.
2) Generally, you don't have to wait to file your 2022 return if you need to amend a prior year's return but I want to make sure I understand your situation fully.
To clarify, did you always remove the excess before the due date of the return and request the withdrawal of excess contributions plus the earnings? Or did you request a regular distribution after the extended due date and therefore didn't need to remove the earnings? When did you receive the distribution?
If you didn't have any earnings because you had losses then you wouldn't need to amend the returns for the received Form 1099-R (with codes P and J and box 2a $0) since you have no taxable event. All that TurboTax would do is add an explanation statement.
3)No.
@ktax1
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
