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Roth IRA contributions. Previous year and current year

Level 1

Proseries Basic user. My taxpayer made two contributions in 2020. One was for 2019 and the other for 2020. After making the contributions, COVID hit and he decided to just withdraw the entire amount that he contributed for 2019 and 2020. I need help entering that information. I tried and I ended up with having an excess contribution for 2020. He did receive a 1099-r and i have inputted that. The 1099-r shows the withdrawal of the entire amount.  

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2 Comments 2
Level 8

Does it have an equal amount for Roth contributions in box 5

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Level 15

There is a mish-mash of considerations in your text. Take one thing at a time.

"and I ended up with having an excess contribution for 2020"

Is the person qualified to have made that amount of a contribution to a Roth for each tax year you are working on? You need to break it out and evaluate it by year.

You told us it was removed, but what is the code on the 1099-R?

Or, you treated it as contributed and removed the same way any corrective distribution for over-contributed excess is removed, which would include dealing with the excise earnings.

"Withdrawal of excess contributions.

For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. This treatment only applies if any earnings on the contributions are also withdrawn. The earnings are considered earned and received in the year the excess contribution was made."

Which year would be considered to be excess?

Or, are you trying to treat this as a qualified covid distribution? Does it qualify as such?

All of these have different treatment.

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