If you have an allowable ROTH IRA contribution next year, you can apply your overpayment to that and that will correct the matter for next year and going forward. Otherwise, you could leave it in there and pay the minimal penalty each year until it is corrected.
If you want to correct it by taking a distribution before April 15, the easiest thing to do would be to enter a substitute Form 1099-R in TurboTax for 2023 as opposed to amending your 2023 return later.
To enter a refund of excess IRA contributions in the current year follow these steps:
- Go to the personal income section of TurboTax
- Find the Retirement Plans and Social Security menu option
- Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
- Choose Add Another 1099-R
- Choose I'll type it in myself
- On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R
- Enter the distribution amount in box 1 of the substitute 1099-R
- Enter the earnings in box 2(a)
- Enter code "P" and "J" in box 7
- When asked about the year on the form 1099-R, say it is for the year following the year you are working on
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
