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In 2000 I made an excess contribution to a Roth IRA for the year 2000. I withdrew the excess in 2001 prior to the due date for my 2000 return. (There was no gain on the amount, there was a loss. So there is no complication of having to report a gain and paying tax on the gain.)

I filed a form 5329 with my 2000 return. I attached a note to it explaining that no tax or penalty was due because the excess contribution had been removed prior to the due date of that return. I did not put the distribution on line 15a of the 2000 return because the money was withdrawn in 2001.

Without delving into those instructions I'm not sure you had to do anything on your 2000 return. However, what you did won't hurt anything even if it wasn't required. IOW, so far, so good.

Now here I am just finishing my return for 2001. I am fairly confident that I do not have to file a form 8606. But do I list the "distribution" on line 15a and attach a note explaining the distribution?

You should have received a 1099-R with a "J" in box 7. The box 1 amount goes on line 15a, zero on line 15b, and then you do Part III of Form 8606. The 8606 is required whenever there's a distribution from a Roth.

Phil Marti
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