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Retirement tax questions
You can report the excess contributions and earnings you withdrew on your 2019 return even though is was not removed until 2020.
You report the information in your 2019 return as a substitute 1099-R. Put the excess amount withdrawn in Box 1 and the Taxable Amount in Box 2 (this amount is the earnings on the excess contribution) and for Box 7 use codes J and P.
You will be penalized 10% on the early withdrawal of the earnings.
Then when you receive the 1099-R in 2021 for the withdrawal you do not need to report it on your return.
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March 8, 2020
8:42 AM