DanaB27,
I too have a situation where I made a full Roth IRA contribution of $7,500 in Sep. 2023 which will be withdrawn with gains (but no fed or state withholdings) in March 2024 due to my income level for 2023 being over max.
I would just like to verify that I correctly understand the steps to handle this on my 2023 turbotax returns:
1.) Enter my Roth contributions of $7,500 in the section asking whether I made any contributions in 2023.
2.) Enter $7,500 in the section where I'm informed of the penalty in the box titled "Contribution withdrawn before the date of your return"
3.) Create a form 1099-R as per the 12 step list you provided on my 2023 return in order to report the withdrawal and taxable gain.
And then once I receive the actual 2024 1099-R in 2025, I completely disregard it, not having to enter it into my 2024 filing at all.
Is this all correct?
Been losing sleep over this one and appreciate all your great advice you've provided in this thread!
