@DanaB27 Thanks, I see the code 21 on Form 5329 in Turbotax. That makes sense for the 2024 tax year filing as it relates to distribution of the 2024 excess contribution and all Roth IRA earnings through 12/31/2024, but what happens in 2025?
In 2025 I will get a 1099-R for the excess contributions that were made in years 2021-2023 ($18,000) that I am instructing the financial institution to distribute separately from the 2024 contribution + earnings distribution. Will this get reported in the 2025 return form 5329 with a code 21?
I looked at the available codes in the Form 5329 instructions and I don't see any code that relates to "return of original Roth IRA contribution from financial institution". Since its a "corrective distribution" and not an "early withdrawal of Roth IRA before age 591/2" I hoped to avoid the 10% early withdrawal penalty or is that impossible?
Thanks for your help!
