I contributed $4500 to T. IRA and $2500 to Roth for 2020 tax year. I'm 34 . I requested my brokerage firm to remove $1000 excess contribution and $300 gain.

How should I enter it in the TurboTax? As I know I am going to get 1099-R in 2021 for my 2020 distribution. Do I have to still report that $300 gain in my 2020 income, even though it would be reported in 2021 1099-R?

102

Level 15

Feb 9, 2021 4:28:27 AM

"Do I have to still report that $300 gain in my 2020 income, even though it would be reported in 2021 1099-R?"

Yes and yes.

Do you know exactally how it will b e reported? (A Roth or Traditional IRA return and what code the IRA custodian will use in box 7 on the 1099-R)?

This *can* be reported now with a "dummy" 1099-R but only if you *know* how it will be reported. Roth and Traditional IRA's returned contributions are reported with different codes.

Why sign in to the Community?

I contributed $4500 to T. IRA and $2500 to Roth for 2020 tax year. I'm 34 . I requested my brokerage firm to remove $1000 excess contribution and $300 gain.