Excess Roth Contributions

[hchan32]

I found out that I made ineligible 2020 Roth contributions because I had no earned income. I requested Vanguard to remove the excess and earnings on February 2021. I will be getting a 2021 1099-R showing this removal and will not receive it until next year in 2022. Instead of waiting for my 2021 1099-R, I followed these instructions to report it on my 2020 return.

I indicated to TurboTax that the year on my 1099-R is 2021. Do I also indicate that this is a substitute 1099-R since I won't be receiving the form until next year?

[MarilynG1 · Accepted solution]

No, you would only indicate a 'Substitute 1099-R' if you were unable to get a Form 1099-R or W-2. 

Follow the instructions for creating the 1099-R for Removal of Excess Contribution as given.

Click this link for more info on Form 4852.

[hchan32]

@MarilynG1 

Oh, that makes more sense- thank you! So when TurboTax shows:

Tell us if any of these uncommon situations apply:

1) I need to file a substitute 1099-R

2) The corrected box is checked on this 1099-R

3) None of these apply

I would choose option 3 for my 2021 1099-R, correct?

[DaveF1006 · Accepted solution]

Yes, in this case, you will select option 3.

[hchan32]

@DaveF1006 

Understood. Thank you!