Follow up with your answer: Her 2/1/ 2021 contribution of $2,000 was for 2020 ROTH as she only contributed $5,000 in 2020. Schwab said the earning from the $2,000 should goes to 2021 Tax Return. So I am trying to get the correct number to put in the 2020 1099-R.
Assuming the total earning from the $7,000 is $700. That means the Total Return Distribution with gain made this year is $7,700. I split the earning by proportion. That is earning for 2020 & 2021 are $500 and $200 respectively.
Then on her 2020 1099-R : Is Box 1, Gross distribution $7,700 or $5,500 or $5,700 ? As I believe Box 2 is $500 as $200 will be for 2021 Return. What is the Code in Box 7, PJ too? Please advise.
