Hello,
I have a question about 1099-R I received for year 2023 with codes PJ in Box 7.
While filing my 2022 returns in 2023, turbotax advised me to remove an excess contribution of $4000 that I made to my Roth IRA.
I withdrew the excess $4000 along with gains before filing my 2022 returns in March 2023. I did not receive a 1099-R to file with my 2022 return.
Fast forward, I received a 1099-R for 2023 showing this distribution. Box 1: $4000 ; Box 2b: both unchecked; Box 7: PJ
Turbotax is triggering a 6% penalty for this distribution in my 2023 filing. Also, I am being instructed to amend my 2022 return. How can this be handled? I believe there should not be a penalty since the excess with gains were for 2022 contribution was removed in March 2023 before the 2022 taxes were filed.
When I tried to amend my 2022 return to with the 2023 1099-R, I'm being informed that there is no need to amend it.
Please advise me address this situation.
Thanks
Kris
