Roth IRA distribution not showing on TurboTax generated 5329 form line 20. Withdrew $6,000 in 2021, but the "distributions in 2021" line is showing $0. How do I fix?

[kmcl890525]

I over contributed in 2020, I took this money out in 2021 after the tax filing deadline, so I owed a penalty. I amended my 2020 return paying the penalty for the over contribution. I uploaded my 1099R form showing the over contribution withdrawal, but my TurboTax generated form is showing I did not withdraw any money in 2021. Where can I fix this. TurboTax is saying I owe the over contribution penalty for 2021 even though I withdrew the amount over contributed - Line 20 of 5329 form showing $0 should this be $6,000?

[DanaB27]

To clarify, you withdrew only the contribution without earnings since it made the withdrawal after the due date of the 2020 tax return?

What is the code in box 7? The excess contribution amount from 2020 of $6,000 got carried over and you get questions during the interview about it?

[kmcl890525]

The over contribution of $6,000 was made in December 2020. I withdrew ~$6,300, the initial contribution and earnings in November 2021 and section 1 of my 5329 form reflects this from my uploaded 1099-R form, paying the penalty of 10% on the capital gains. 

Box 7 code is 8,J. 

Will I owe the 6% excess contribution penalty in 2021 in addition to 2020? That is what turbo tax is showing me. It is outlining $0 on my 5329 form line 20. Where in the interview do you input that you withdrew from your Roth IRA, I would have thought this would be taken into account from my uploaded forms, but it seems to have not.

[DanaB27]

No, you do not owe the 6% excess contribution penalty in 2021 in addition to 2020.

The issue is that you have the incorrect code in box 7, as a regular distribution since it was after the due date of the 2020 tax return, it should have code J in box 7 and nothing more. Then it would show up correctly on line 20 of Form 5329.

You might want to check with your financial institute if you can get the code corrected.