Skip to main content
March 15, 2021
Question

Where in the TurboTax online program do you report the earnings on withdrawal of excess IRA contributions?

  • March 15, 2021
  • 1 reply
  • 0 views
No text available

1 reply

RayW7
March 15, 2021

You should receive a 1099-R from the financial institution once you withdraw the excess contribution. 

 

If you withdrew the excess contribution in 2021 and you have not yet filed your tax return, you can report the withdrawal so you are not charged the 6% penalty for 2021.  

 

Note: If you have not received a 1099-R for excess withdrawn in 2021 then-

 

To report the withdrawal you create a substitute 1099-R

 

  • You would enter the 1099-R with the total distribution in box 1 (the contribution plus the earnings),
  • The earnings in box 2a,
  • Enter code "P" in box 7 (Top) - don t worry that it will say "taxable in 2016 "
  • Enter code "J" in box 7 (Bottom).
  • On the "Which year" screen say that this is a 2020 1099-R.