@sridharm wrote:
Thank you for your prompt reply. For myself (TD Ameritrade) the code is J,P and for my wife (vanguard) it is 8,J.
Regards,
Sri
JP indicates a return of excess contributions where the earnings were taxable in the prior year (2021, for a 2022 from 1099-R. The earnings should be in box 2 while box 1 will report the entire amount of the withdrawal. This is appropriate if you withdrew excess contributions made for the 2021 tax year, even if the withdrawal occurred in 2022. You should have already reported the earnings as taxable on your 2021 tax return. You need to enter the 1099-R on your tax return, but neither the contributions nor the earnings should be taxable in 2022.
8J indicates a return of excess contributions where the earnings are taxable in the current year (2022). he earnings should be in box 2 while box 1 will report the entire amount of the withdrawal. This is correct if you withdrew 2022 excess contributions in 2022, but it is not correct if you withdrew 2021 contributions in 2022. Turbotax will include the earnings as taxable income on your 2022 return. However, if this was a return of 2021 excess contributions that was processed in 2022, you should have already paid tax on the earnings on your 2021 return, and you would need to get a corrected 1099-R from the broker. If this is a return of 2021 excess that was processed in 2022, it should be code JP.
@dmertz do you concur?
