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Retirement tax questions
Are you talking about taking a distribution of $130 and saying that it is not for qualified medical expenses, in order to clear your $130 excess contribution from 2018?
I have not been keeping up with this discussion, but the way that the 5329 Part VII works is that if you show excess contributions that are carried over AND you show the same amount as a distribution not for medical expenses, then the form zeroes out the excess, but not until it adds the $130 to Other Income and penalizes you 20%. But, at least, the excess will be done with.
You don't have to worry about matching 1099-SAs to the year.
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‎February 3, 2020
12:49 PM