Next year I will receive a 1099-R for the transaction, and it will show zero gain in box 2a (since excess contributions were withdrawn at a net loss), but there will still be info in box 1 showing I made a distribution. So even though I sold my excess contribution for a loss, shouldn't I still enter the information so the IRS knows there was a distribution? I had assumed yes.
So i guess my question is: assuming I "should" proactively enter the transaction into my taxes before i get the 1099R, what code will be in box 7 when there is zero in box 2a. Typically it is "PJ" when there is a gain, but will it still be PJ if I sold for a loss?
Thanks so much.
