Remove Excess Roth IRA Contribution and Next Steps

sg758532 — Mon, 09 Mar 2026 04:43:34 GMT

In 2020 I made a $6000 contribution to my Roth IRA (I'm younger than 59.5 years old). When doing my 2020 taxes in early 2021, I found out about this excess contribution and had the contribution and earnings ($7000) removed before filing my taxes (rollover/recharacterization was not an option). When filing my 2020 taxes, I followed the TurboTax instructions ("Withdraw the Excess Contribution from your Roth IRA/Made the contribution to the Roth IRA in 2020 and withdrew it in 2021") to create a substitute 1099-R, which I filled out to the best of my ability at the time, since the $1000 earnings are taxable in the year the contribution was made, not the year it was withdrawn.

Now that it is 2022 and I received the 1099-R corresponding to my excess+earnings withdrawal from early 2021, I realized that my substitute 1099 form has many of the correct numbers (boxes 1, 2a, and codes PJ in 7), but not all of the numbers are correct: I left boxes 4, 14, and 15 blank because I was unsure about state and federal tax amounts. The 2021 1099-R I just received has amounts in boxes 4, 14, and 15 that properly reflect what I should have entered in my substitute 1099.

My questions now are the following:

Do I need to file an amended 2020 return and fix the numbers in the boxes I had left blank in my substitute 1099 form? My 2020 tax return showed that I owed $100 in taxes from the earnings (10% of the earnings) and I similarly paid CA state tax on the earnings as well.
Do I still include this 2021 1099-R from in my 2021 taxes? Or do I not use this 1099-R because of the substitute 1099-R I created and included in my 2020 taxes?

Thank you for your time.

Re: Remove Excess Roth IRA Contribution and Next Steps

DanaB27 — Mon, 28 Feb 2022 14:11:53 GMT

1. No you do not need to amend your 2020 tax return because the tax withholdings from boxes 4 and 14 belong on the 2021 tax return only.

2. Yes, you must enter the 2021 1099-R into the 2021 tax return since the withholdings are reported in the year that the taxes were withheld. The 2021 code P will not do anything in 2021 tax return but the withholding will be applied to 2021.

topic Remove Excess Roth IRA Contribution and Next Steps in Retirement tax questions

Remove Excess Roth IRA Contribution and Next Steps

Re: Remove Excess Roth IRA Contribution and Next Steps