dmertz
Level 15

Retirement tax questions

Entering the $20 as qualifying for the Other Reason exception causes TurboTax to include the Form 5329 in your tax return.  You can view the form when you print your tax return before filing.

 

The error message implies that you've told TurboTax (or transferred in from your 2021 tax return) that you have an excess Roth IRA contribution of $99 or more carried into 2022 from 2021.  You haven't mentioned above anything about having made an  excess contribution for 2021 or earlier.  TurboTax is implying that you should  be applying $99 of that carried-in excess to fill out the otherwise unused portion of your 2022 contribution limit (the portion opened up by having returned to you more than the amount of your 2022 excess contribution).  If you actually had no excess contribution in 2021, you need to remove the erroneous entry that you made saying that you did.