@jnpatla wrote:
Yes, sorry
Then disregard my post assuming that it was returned in 2019.
Your option is as user HOCKITOFF suggested filing a 4852 substitute 1099-R with code P and with an explanation of the reason you are using a substitute and the steps you took to get it corrected (The TurboTax interview for a substitute 1099-R will ask for those explanation statements).
As for the $619 earning still in the IRA that should have been returned with the contribution - that might be sticky. If you simply remove it now, it will be another normal distribution that will be taxable and it is too late to have it returned as a return of contribution. You "might" be able to get the IRS to waive the penalty for late removal but that could take months of letter writing.
@dmertz do you have any suggestions for the earnings? Would it be possible to treat the earnings as a 2017 excess and just pay the 6% penalty on an amended 2017 return ($37) and just leave it in the IRA which would probably be cheaper in the long run?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
