Should I report income for 2020 on a March 2021 distribution for earnings on excess contribution made in 2020 to Roth IRA when I did not receive a 1099?

[gabrielgabriel01]

It's my understanding that you do pay taxes/report income for the year of the excess contribution (2020) and not necessarily the year of the distribution (2021) but would like to confirm.

[MinhT1]

If you withdrew your excess contribution and the related earnings by the due date of your 2020 tax return, then you should report earnings on your 2020 tax return. Also if you are under 59 1/2, the earnings are subject to the 10% early withdrawal penalty in 2020.

[gabrielgabriel01]

Good to know. I called my broker and they told me I wouldn't get a 1099 for 2020 but would get one for 2021 and report the earnings on my 2021 taxes. They referred me to IRS publication 550 or 590b and will investigate further. Thank you for the tip.

[gabrielgabriel01]

Looks like the broker was wrong on this one after reading 590-A. I guess I'll have to say I got a 1099 in Turbo Tax to file even though I'm not getting on this year. 

[ReneeM7122]

You don't have to create a 1099.  In TurboTax, when you enter your contributions (Deductions & Credits/Retirement and Investments/Traditional and Roth IRA Contributions), enter the entire amount (including the excess) and include that amount in the value at 12/31/2020.  

Here's a TurboTax article about retirement contributions.