Amending 2024 Return – Return of Excess Roth Contribution but No 1099-R Yet

[rajohns]

Hi everyone — looking for guidance on how to properly amend my 2024 return. I originally filed my 2024 tax return, and later realized I had an excess Roth IRA contribution for 2024 due to income limits.

Here’s my situation:

• Contributed $5,000 to a Roth IRA for 2024
• Determined that $4,500 was excess
• Submitted a return of excess request to Fidelity
• Fidelity processed the return of excess in 2026 (funds + earnings distributed to me)

Here’s where I’m confused:
Since the corrective distribution happened in 2026, I understand I will not receive the 2026 Form 1099-R until early 2027. However, I need to amend my 2024 return now to properly reflect the excess correction and avoid the 6% penalty.

My questions:

1. How do I correctly amend my 2024 return in TurboTax if I do not yet have the 1099-R?
2. Should I manually enter a substitute 1099-R for 2024 (with code P/J), or should I just update Form 5329 to remove the excess?
3. If there were earnings on the excess, I understand those are taxable for 2024 (since it’s a 2024 contribution), even though the 1099-R won’t arrive until 2027 — how is that reported now?
4. Is there anything specific I need to include in the explanation statement with the 1040-X?

Just want to make sure I handle 2024 correctly now and don’t wait for a 1099-R that won’t arrive until next year. Thanks in advance!

[ReneV4]

To correctly amend your 2024 return in TurboTax, you should not create a Form 1099-R because it does not apply to your 2024 return.

Instead, you will update your IRA contributions section to report your earnings, which are taxable income on your 2024 return.

TurboTax makes it easy for you to file an amendment. Here is a link on how to proceed with the amendment in TurboTax.

Once you begin your amendment:

1. Go to Deductions & Credits, Select Traditional and Roth IRA Contributions, then Start
2. Enter the original amount of $5,000
3. Answer the income limit questions and TurboTax will calculate that you were only allowed to contribute $500
4. Next, you will be alerted about the penalty for early withdrawal
5. TurboTax will then generate Form 5329 and calculate the penalty amount
6. In your explanation statement, you will explain that you are amending to report the return of an excess 2024 Roth IRA contribution and related earnings which were distributed in 2026.

For your 2025 tax return:

Since the correction took place in 2026, for your 2025, you will not need to report the 2024 correction. You will proceed with your 2025 contributions as normal, ensuring you stay within the income limits.

For your 2026 return:

When you receive your Form 1099-R in 2027, look for the Box 7 Code to ensure it has a J. 

[edited 3/1/2026 12:00 p.m.] @rajohns

[rajohns]

@ReneV4 Thank you so much for the clarification!

Quick follow up question though. In this case I only have to pay the 6% penalty (Form 5329) for 2024 or do I have to pay a penalty in 2025 as well considering the return of excess wasn't done until 2026? 

Thanks again for the help!

[DanaB27 · Accepted solution]

You will need to pay the 6% penalty on your 2024 and 2025 return since you did not remove the excess until 2026. The excess contribution will resolve when you enter the 2026 Form 1099-R with code J (if under 59 1/2) on your 2026 return.

Note, since you removed the excess after the due date of the 2024 return in 2026, you were only required to take a regular distribution without earnings. Fidelity should issue a 2026 Form 1099-R with code J (if under 59 1/2) since you requested the removal of excess contribution after the due date of the 2024 return.

On your 2025 return to ensure the 6% penalty is calculated: 

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. On the "Did you contribute more to a Roth IRA than was allowed in 2024 or any previous year?" answer "Yes"
5. On the "Enter your excess Roth IRA contributions made in 2024 or prior years" screen enter the total excess contribution from 2024 (if it wasn't carried over).