DawnC
Expert Alumni

Get your taxes done using TurboTax

To report the excess earnings, you need to enter the 1099-R you are going to get next year, now.   In box 7, enter the P code.   Ignore the taxable in 2022 description, as you will get a follow-up question; tell TurboTax this is a 2024 form 1099-R.   The P will make the earnings taxable on this 2023 return.   The earnings will be on line 4b.   

 

If you report it now in your 2023 return, you can ignore the 1099-R when it comes next year in 2025, unless the form has any withholding.   Then you must enter the 2024 1099-R into the 2024 tax return, since the withholding is reported in the year that the tax was withheld.   The 2024 code P will not do anything in 2024 tax return, but the withholding will be applied to 2024 return.

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