How do I pay 6% penalty tax? would I need to enter this info under early retirement withdrawal?
If you withdraw the excess contribution plus earnings by April 15 then you will not have to pay the 6% penalty. Please tell your bank that it is a withdraw of excess contribution plus earnings.
Please follow these steps to enter the contribution and the withdraw:
You will get a 1099-R 2021 in 2022 with codes P and J (for Roth IRA) or 1 (for traditional IRA). This 1099-R will have to be included on your 2020 tax return and you have two options:
To create a 1099-R in your 2020 return please follow the steps below:
If you withdraw the excess contribution plus earnings by April 15 then you will not have to pay the 6% penalty. Please tell your bank that it is a withdraw of excess contribution plus earnings.
Please follow these steps to enter the contribution and the withdraw:
You will get a 1099-R 2021 in 2022 with codes P and J (for Roth IRA) or 1 (for traditional IRA). This 1099-R will have to be included on your 2020 tax return and you have two options:
To create a 1099-R in your 2020 return please follow the steps below: