We made an excess ROTH Ira contribution for 2019.
This month, I withdrew our initial contribution ($6000). I made the mistake of electing for withholding on both federal and state taxes on the excess contribution earnings.
For myself:
Original contribution: $6000 (contributed spring 2019)
2019 Earnings withdrawl: $255.43 (withdrawn in 2020)
Federal withholding: $72.99
State withholding: $36.50
I think I really messed myself up with the withholding for turbotax. I was planning to do a "dummy" 2019 1099-R to pay tax on the earning as well as the penalty (and avoid an amended 2019 return). Now, as I *think* the withholding counts toward 2020 while the earnings are taxable in 2019, how should I handle this? How do I address in turbotax?
Thanks in advance for any responses.
