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LAC123
New Member

Wrong step on return of excess contribution on Roth IRA - Question on earnings

When I was filing my 2020 tax return, I knew that I had to do return of excess contribution from my Roth IRA, instead of submitting a form to request it, I did a withdrawal $6,000 from the account. After receiving the 2021 1099-R with code J only, I realized that I did it wrong and requested a correction on the form and reprocessed it with the right way (by submitting the return of excess contribution form for 2020.) Per the brokerage, they need to update the 1099-R form for the $6,000 that I withdrew in Mar'21 for 2020 Roth IRA contribution. They will also need to calculate the earnings and return to me. It brings me a question: As the earnings will be pulled out recently, which year should I report it? 2020 or 2021?

 

Thank you.

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1 Reply
DaveF1006
Expert Alumni

Wrong step on return of excess contribution on Roth IRA - Question on earnings

You can report this in 2021 and you will not need to amend your 2020 return.

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