Return ROTH Contribution Reporting

Forum|Forum|4 years ago
May 11, 2021
1 reply
0 views

Need help with Roth IRA contribution withdrawal on 2020 tax return.

I am filing a joint return with my wife. Due to my retirement on 12/2020 receiving excess sick time and vacation pay, I can no longer conn tribute to ROTH. The trouble is my wife and I have already contributed $7,000 each for 2020 and I had done $7000 for 2021 this year. I just had Schwab remove all the contribution instead and waiting for the # to report. I was told my 2021 will be reported next year.

Now I am trying to revise my tax return, here is my questions on TT Question page:

Traditional IRA & ROTH IRA – Select the kind of IRAs you own or will contribute to for 2020

Since we have already removed or withdrew the contributions, do you think we have to check ROTH IRA Check Box?

Best answer by macuser_22

@SLYKTAX wrote:

So, once I have my Roth contribution return, I just treat it as I never contributed to it at all instead of reporting I contributed and then removed, right? The only thing I need to do is reporting on 1040 line 4a is the total return with profits or loss and Line 4b the profit or loss, correct?

Right. Only the earnings that are shown in box 2a on the 1099-R for the return of contribution is taxable. Remove the contribution so the Roth tracking will not show it or if you got the savers credit for it.

A Roth IRA contribution does not actually go on a tax return, but you can enter it anyway.

1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.

macuser_22

Employee

No. Uncheck it and remove any contribution entered.

**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.**

SLYKTAXAuthor

So, once I have my Roth contribution return, I just treat it as I never contributed to it at all instead of reporting I contributed and then removed, right? The only thing I need to do is reporting on 1040 line 4a is the total return with profits or loss and Line 4b the profit or loss, correct?

macuser_22Answer

Employee

@SLYKTAX wrote:

So, once I have my Roth contribution return, I just treat it as I never contributed to it at all instead of reporting I contributed and then removed, right? The only thing I need to do is reporting on 1040 line 4a is the total return with profits or loss and Line 4b the profit or loss, correct?

**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.**