Excess Roth IRA Contributions

[pcamp19]

We contributed to our 2019 Roth IRA's in Feb. 2019 - filed taxes in Feb. 2020 for 2019 Taxes and found out we were over the AGI to contribute.  By then we had already contributed to our 2020 Roth accts in Feb 2020.  Money was removed from the accounts in March of 2020 for both years.  I now received 1099-R for both years, however, when the money was removed, the market had dropped from COVID and it is less than what we put in.  Do I need to file an amended return for 2019 or just treat the 1099-R's as withdrawals from our Roth accounts since we are both over 60.  I am very confused as how to handle this.

[ThomasM125]

For the excess contribution in 2019, if you had any income earned on the excess you need to amend your tax return in 2019 to include it in your income.

For the excess contribution in 2020, you would do the same on your 2020 tax return.

To determine if you earned any income, you would need to go by the income earned during the time between when you made the excess contribution to the time you withdrew it from your account.

You can't just treat the withdrawals as non-taxable, since some of the money was from excess contributions, that don't grow tax-free.