I over contributed to Roth IRA in 2020, but requested the removal prior to the 2020 filing deadline.

[spry11]

I would like to add the earnings of $1300 to my taxable income for year 2020 (for which I filed an extension), but the 1099-R won't be issued until 2022.

I am 69 years old, so I should not have a penalty, but I cannot determine how to create a substitute 1099-R to indicate the earnings from the excess contribution and also possibly generate form 5329. My broker did send me a gross distribution check showing the excess distribution amount as well as the earnings it generated. I am trying to file by October 15, 2021 - any help and direction would be most welcome. Thanks in advance.

r

[macuser_22]

You only need to remove the excess and earnings before Oct 15, if you files a timely extension of filed your 2020 tax return prior to May 17.   You have 3 years to amend.

If you have not filed, but filed an extension then you can just file a regular 1099-R, not a substitute since yiu have not received an improper 1099-R to substitute for AND you know the exact amounts to enter into box 1 (the total returned) and box 2a (the earnings) and you KNOW that the 1099-R when issued will have a code "PJ" in box 7, otherwise just wait for the 1099-R and amend after receiving it.

There is no 5329 form for a return of contributions but is required of the 1099-R has only a code J in box 7.  If a code J only then the earnings stay in the account and need not be removed, but you pay a 6% penalty on the excess.  With a code PJ, only the box 2a earnings are taxable as ordinary income and there is no penalty.