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Handling overcontribution Roth IRA forms for 2020 which was made for 2019

In march 2020 I opened a Roth IRA and contributed $6,000 (for 2019). Later the SAME day according to turbotax (2019 return) I was only allowed to contribute $4,570 for 2019 based on my income so I had to do a withdrawal of $1,430. I haven't specified in turbotax anywhere that I had to do a withdrawal.  No additional forms were filed to cover that situation. 

 

This year 2021 I received forms 5498 and 1099-R  from a brokerage that seems to treat my contribution and the withdrawal as they were related to 2020 not 2019 (tax withheld fields are empty). Not sure how to best handle that, and if I'd have to amend 2019 return or if it's possible to handle this within the 2020 return. 

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1 Reply
DanaB27
Expert Alumni

Handling overcontribution Roth IRA forms for 2020 which was made for 2019

Generally, if you requested the withdrawal of excess contribution plus earnings, then only the earnings will be taxable in the year in which you made the contribution. A contribution made for 2019 in 2020 is deemed to have been made on the last day of 2019. Therefore, the earnings will be taxable in 2019.  Please see How do I amend my 2019 return?

 

What is the code in box 7 in 1099-R?

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