I have a similar situation, but I'm removing all of my 2016 Roth IRA contributions of $5500 to make space to carry over my $5500 2015 excess due to AGI limit, which I didn't realize until this year, 2017. What I don't understand is when I use the combo of code J and P, Turbo Tax seems to add the 2016 $5500 contribution that I'm withdrawing into my taxable income. So in my case the specifics in my substitute "2017 1099R" (since I did this withdrawal of 2016 contributions in 2017 and won't get an actual 1099R until January 2018) are: Box 1 = $6605.92 (which is $5500 2016 after tax contribution + $1105.92 earnings on that 2016 after tax contribution) and Box 2a = $1105.92 (taxable earnings). Any ideas? Everything else looks perfect on the 2016 5329 form when I look at it directly in Turbo Tax. I'm getting the 10% penalty on just the taxable portion of $1105.92 as I would expect. But both the after tax $5500 2016 contribution AND the $1105.92 taxable earning are being added to my income. I should only have the $1105.92 added as taxable earnings, correct?
