topic 2021 1099-R FOR ROTH IRA EXCESS CONTR FROM 2020 (CODE J,P) in Retirement tax questions

2021 1099-R FOR ROTH IRA EXCESS CONTR FROM 2020 (CODE J,P)

corbelli — Thu, 10 Feb 2022 04:08:49 GMT

I received a 2021 1099-R for my Roth IRA for excess contributions in 2020.

I made a corrective distribution in Jan 2021 prior to sending my 2020 tax return, but I didn't have the 2021 1099-R.

I contributed $7000 (I'm over 50) and my corrective distribution was only $5500, as I lost money that year.

Do I need to file a 2020 amended return if I had a lost earnings?

Should I have filed anything in my 2020 tax return for this?

Re: 2021 1099-R FOR ROTH IRA EXCESS CONTR FROM 2020 (CODE J,P)

DianeW777 — Thu, 10 Feb 2022 21:08:31 GMT

When you removed the excess contribution you should have also removed any earnings on that excess contribution at the same time. This information would have had to come from the financial agent.

The earnings would have been taxable on your 2020 return (and a 10% penalty on that same amount if you were under 59 1/2 years of age). If you did not include that on your 2020 return then it should be amended to include the Form 1099R. Taxable amount should be earnings portion only.

When entering the information on the 2021 return you should see a code 'P' in Box 7 of your Form 1099R. This shows the IRS that the earnings are taxable in 2020 and lets TurboTax know it's not taxable in 2021.

P – Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2020

When you amend your 2020 return you will enter/add the Form 1099R as though you received it in 2020 and you will include only the earnings. For the 2020 return the code in Box 7 should be code '8'.

8—Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2020

This will complete the returns correctly.

How do I amend my 2020 return?

Re: 2021 1099-R FOR ROTH IRA EXCESS CONTR FROM 2020 (CODE J,P)

corbelli — Fri, 11 Feb 2022 00:45:43 GMT

But I didn’t have any earnings that year. I lost money. Do I still need to file an amended return?

Re: 2021 1099-R FOR ROTH IRA EXCESS CONTR FROM 2020 (CODE J,P)

ThomasM125 — Fri, 11 Feb 2022 00:58:04 GMT

You would not have to amend your 2020 return since you didn't earn any money on the excess contribution.

Re: 2021 1099-R FOR ROTH IRA EXCESS CONTR FROM 2020 (CODE J,P)

Betty100 — Tue, 29 Mar 2022 21:05:56 GMT

For the prior year return, I had to put code 8 and J for the 10% penalty to generate in the software. If the J was left off, the 10% penalty did not appear.