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Jason03
Returning Member

2020 excess roth IRA contribution removed in 2020

Jan 2020 I put in the max amount ($6000) into my Roth IRA.  I got married in 2020 and our combined salary was over the limit to contribute to a Roth IRA.  I withdrew the $6000 plus the earnings I made in November 2020.  I received a 1099-R from my investment firm.

 

While filing my taxes, and it asks me how much I contributed in 2020 to Roth IRA, do I say $6000, or do I say $0 since I removed the entire amount?  I'm also populating all the data of the 1099-R.

5 Replies
macuser_22
Level 15

2020 excess roth IRA contribution removed in 2020

What code is in box 7?

What is in box 2a?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Jason03
Returning Member

2020 excess roth IRA contribution removed in 2020

box 7: 8J

2a: 1,500

macuser_22
Level 15

2020 excess roth IRA contribution removed in 2020

OK, Just enter the 1099-R.  The box 2a is the earnings that will be taxable.  Say that you contributed zero since it was removed.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Jason03
Returning Member

2020 excess roth IRA contribution removed in 2020

thank you! that was what I was planning based on research!

 

If my wife contributed $6,000 also but removed it and it's earnings in Feb 2021, does she need to report that she contributed in 2020 or can she put $0 as well in contributions since she removed them?

macuser_22
Level 15

2020 excess roth IRA contribution removed in 2020


@Jason03 wrote:

thank you! that was what I was planning based on research!

 

If my wife contributed $6,000 also but removed it and it's earnings in Feb 2021, does she need to report that she contributed in 2020 or can she put $0 as well in contributions since she removed them?


If removed in 2021 then 1099-R will not come until Jan 2022, but it will be taxable on the 2020 tax return.

That 2021 1099-R should have a code "PJ" in box 7  and the taxable earnings in box 2a.

 

It would be reported the same way.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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